(HYLB) Xtrackers USD High Yield - Ratings and Ratios

Xtrackers USD High Yield Corporate Bond ETF (HYLB) is a high-yield corporate bond ETF that invests primarily in U.S. dollar-denominated high-yield corporate bonds. The fund is designed to track the performance of its underlying index, which is composed of high-yield bonds issued by U.S. and foreign corporations. HYLB typically allocates at least 80% of its net assets, plus any borrowings for investment purposes, to these high-yield bonds. This makes it a concentrated play on the high-yield debt market, appealing to investors seeking higher yields compared to investment-grade bonds, though with higher credit risk.

HYLBs portfolio is passively managed, aiming to replicate the performance of its underlying index. The funds concentration in specific industries depends on the composition of its index, meaning it may have significant exposure to certain sectors if they dominate the high-yield market. This sector concentration can amplify both returns and risks, depending on market conditions. As of its latest reporting, HYLB has an AUM of $3.45 billion, making it a sizeable player in the high-yield ETF space.

For investors and fund managers, HYLB offers a liquid and cost-efficient way to gain exposure to the U.S. high-yield corporate bond market. Its expense ratio of 0.15% is competitive within the high-yield ETF category. The fund is domiciled in the United States and is listed on the NYSE ARCA under the ticker symbol HYLB. It is managed by DWS, a global asset management firm with a long history of managing fixed-income and equity products. HYLB is suitable for investors looking to diversify their fixed-income portfolios with higher-yielding debt securities, though they should be aware of the associated credit risk and potential volatility.