(USHY) iShares Broad USD High - Ratings and Ratios

The iShares Broad USD High Yield Corporate Bond ETF (BATS:USHY) is designed to provide exposure to the U.S. dollar-denominated high-yield corporate bond market. The fund allocates at least 80% of its assets to securities included in its underlying index, ensuring a broad representation of the high-yield sector. Additionally, it invests at least 90% of its assets in fixed-income securities from the index, aiming to closely track its performance. This strategy is managed by BlackRocks BFA unit, leveraging their expertise in index tracking.

The ETFs underlying index is comprehensive, covering a wide range of high-yield bonds issued by various issuers. These bonds are typically from companies with lower credit ratings, offering higher yields to compensate for the increased credit risk. The funds market capitalization exceeds $18 billion, indicating its size and liquidity in the market.

For investors, USHY offers a way to gain exposure to the high-yield bond market, which can be attractive for those seeking higher income in their portfolios. However, its important to consider the associated risks, including default risks and potential volatility in bond prices. As part of a diversified portfolio, USHY can serve as a tool for income generation and diversification across asset classes.