HYGH ETF ANALYSIS

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HYGH ETF FUNDAMENTALS
HYGH ETF PERFORMANCE

HYGH ISSUER

The issuer of the HYGH ETF is BlackRock, a global leader in investment management and financial services. BlackRock is known for its expertise in managing a wide range of investment products, including exchange-traded funds (ETFs). The HYGH ETF seeks to track the BlackRock Interest Rate Hedged High Yield Bond Index, which is designed to minimize interest rate risk in a portfolio of U.S. dollar-denominated, high yield corporate bonds. With its extensive experience and resources, BlackRock aims to provide investors with a diversified and efficient investment vehicle that offers exposure to high yield corporate bonds while managing interest rate risk effectively.

HYGH DIVIDEND

The HYGH Dividend ETF aims to mirror the investment results of the BlackRock Interest Rate Hedged High Yield Bond Index. This index is strategically designed to minimize interest rate risk by incorporating up to 10 interest rate swap contracts with different maturities. The ETF primarily invests in U.S. dollar-denominated, high yield corporate bonds, focusing on those with an original maturity date of less than 15 years and at least one year to maturity. While the HYGH Dividend ETF doesn't primarily emphasize dividends, it provides investors with exposure to high-yield corporate bonds while hedging against interest rate fluctuations. As of October 31, 2022, the Underlying Index comprises approximately 12 components, offering diversification within the high-yield bond market.

HYGH TRACKING

Central to the strategy of the iShares Interest Rate Hedged High Yield Bond ETF (HYGH) is its dedication to tracking the Bloomberg Barclays U.S. High Yield Very Liquid Index, a benchmark of high-yield corporate bonds. HYGH employs an interest rate hedging strategy to mitigate the impact of rising interest rates on its portfolio. By closely following the index, HYGH offers investors an avenue to participate in the high-yield bond market while managing interest rate risks, making it an attractive choice for those seeking a balance between yield potential and interest rate sensitivity.

HYGH CORRELATION

The correlation aspect of the Alternative Sources High Yield ETF (HYGH) is known for its strong relationship with the performance of high yield corporate bonds in the U.S. market. Given that HYGH seeks to track the BlackRock Interest Rate Hedged High Yield Bond Index, it is designed to minimize interest rate risk while providing exposure to below investment-grade corporate bonds. Investors can expect a correlation between HYGH and the broader high yield bond market, making it a valuable tool for those looking to hedge against interest rate fluctuations and diversify their portfolios with high yield bonds. To explore the correlations in more detail and gain deep insights into HYGH and other U.S. ETFs, ETF Insider's web app offers a user-friendly visualization tool that helps investors identify overlaps and make informed investment decisions.

HYGH SECTOR

The HYGH ETF (HYGH) primarily focuses on the high yield corporate bond sector. It seeks to track the BlackRock Interest Rate Hedged High Yield Bond Index, which is designed to minimize interest rate risk in a portfolio of U.S. dollar-denominated, high yield corporate bonds. The index includes approximately 12 components as of October 31, 2022, and the ETF invests primarily through the use of interest rate swaps to hedge its duration exposure. While this ETF offers investors exposure to the high yield bond market, it also involves some interest rate risk management strategies, making it suitable for those seeking income with a reduced interest rate risk profile.

HYGH EXPOSURE

The exposure of the HYGH ETF is centered on the BlackRock Interest Rate Hedged High Yield Bond Index. This ETF is designed to mitigate interest rate risk while focusing on U.S. dollar-denominated, high yield corporate bonds, which are typically considered below investment-grade. To accomplish this, the ETF employs up to 10 interest rate swap contracts with varying maturities. The portfolio''s duration exposure is strategically hedged at key points on the yield curve, as determined by the Index Provider. It aims to track the performance of the Underlying Index before fees and expenses, providing investors with a unique way to access the high yield corporate bond market while managing interest rate risk.

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