5 min readBy Ron Koren ETF Insider
How does the HYBL ETF work?
The HYBL ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The Blackstone Liquid Credit Strategies LLC serves as the issuer for the HYBL ETF. This sub-adviser primarily invests the fund's assets in U.S. dollar-denominated high-yield debt securities, including high-yield corporate bonds, senior loans, and debt tranches of U.S. collateralized loan obligations (CLOs). These high-yield debt securities are typically rated BB+ or lower by S&P Global Ratings or Fitch Ratings Inc., Ba1 or lower by Moody's Investors Service, Inc., or equivalent ratings by another nationally recognized statistical rating organization. The HYBL ETF aims to outperform a composite benchmark comprising 50% high yield bonds and 50% high yield senior loans with less volatility, using a top-down asset allocation approach and bottom-up security selection to optimize risk-adjusted returns in the high-yield credit market.
The Blackstone Liquid Credit Strategies ETF (HYBL) focuses primarily on investing in U.S. dollar-denominated high yield debt securities, which include high yield corporate bonds, senior loans, and debt tranches of U.S. collateralized loan obligations (CLOs). To be eligible for inclusion in the fund, these securities must be rated BB+ or lower by S&P Global Ratings or Fitch Ratings Inc., Ba1 or lower by Moody's Investors Service, Inc., or have equivalent ratings from another nationally recognized statistical rating organization. The fund may invest in debt securities of any maturity, with up to 100% of its net assets allocated to either high yield corporate bonds or senior loans. However, investments in CLOs are limited to a maximum of 15% of its net assets. The dividend distribution of HYBL is influenced by the performance and dividend policies of the underlying high yield debt securities. The fund aims to outperform a composite benchmark comprised of 50% high yield bonds and 50% high yield senior loans while minimizing volatility. HYBL's investment strategy involves a top-down asset allocation approach that considers macroeconomic, technical, fundamental, and relative value factors to optimize allocation weights among asset classes. Additionally, a bottom-up security selection process is employed, emphasizing fundamental credit research to capture credit risk premiums. The fund's portfolio is actively managed to optimize risk-adjusted returns, which may result in a high portfolio turnover rate.
The Invesco High Yield Bond ETF, HYBL, is designed to track the performance of the ICE BofA US High Yield Constrained Index. This index includes U.S. dollar-denominated high yield corporate bonds. HYBL primarily invests in high yield bonds (often referred to as junk bonds) rated BB+ or lower by S&P Global Ratings or Fitch Ratings Inc., Ba1 or lower by Moody's Investors Service, Inc., or equivalent ratings by another recognized rating organization, or if unrated, determined by the Sub-Adviser to be of comparable quality. The fund aims to provide investors exposure to the high yield bond market with a focus on generating attractive risk-adjusted returns by using a systematic approach for security selection and risk management. Additionally, HYBL may invest in other fixed-income instruments, including CLOs and government bonds, to optimize its risk-adjusted returns while managing volatility.
The correlation aspect of the Blackstone Liquid Credit Strategies LLC ETF (HYBL) is important for investors seeking exposure to U.S. dollar-denominated high yield debt securities. HYBL primarily invests in high yield corporate bonds, senior loans, and debt tranches of U.S. collateralized loan obligations (CLOs). These high yield debt securities, often referred to as junk bonds, are rated BB+ or lower by S&P Global Ratings or equivalent by other rating organizations. Investors are drawn to HYBL's correlation with the high yield market, which helps them gauge its performance and potential risk.
The Highland iBoxx Senior Loan ETF (HYBL) primarily invests in U.S. dollar-denominated high yield debt securities, focusing on senior loans. Senior loans are loans made to businesses, often with leading market positions and strong cash flows. The fund aims to provide investors with exposure to high yield corporate bonds and senior loans, seeking to maximize performance while managing risk through a combination of top-down asset allocation and bottom-up security selection. Additionally, HYBL may invest in other fixed-income instruments, derivatives, and exchange-traded funds (ETFs) to enhance its risk-adjusted returns and achieve its investment objectives.
The Invesco High Yield Bond ETF (HYBL) focuses on providing exposure to the high yield debt securities market. This ETF primarily invests in U.S. dollar-denominated high yield corporate bonds, aiming to capture the potential returns offered by these lower-rated bonds. With a strong emphasis on high yield bonds, HYBL offers investors an avenue to access the high-risk, high-reward segment of the fixed income market.
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5 min readThe HYBL ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
5 min readThe HYBL ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the HYBL ETF.
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