The issuer of the HYUP ETF is committed to providing investors with exposure to US dollar-denominated high yield corporate bonds that exhibit higher beta to the overall high yield corporate bond market. This ETF issuer employs a passive or indexing investment approach, seeking to replicate the performance of the Underlying Index by investing in a representative sample of securities that mirror the risk and return characteristics of the entire index. With a focus on higher yielding bonds and a strict selection criteria, this issuer plays a pivotal role in offering investors access to a specialized segment of the corporate bond market.
While the primary objective of the HYUP ETF may not revolve around dividends, it does align with the dividend distribution of its underlying index, the Emerging Markets High Yield Index. Dividend distributions for this ETF generally occur periodically, and they are influenced by the individual dividend policies and financial performance of the constituent companies within the index. Investors considering HYUP can expect a focus on emerging market securities, which may provide a balance between capital appreciation and potential dividend returns.
The Alternative Sources HYUP ETF's primary goal is to track the performance of the Underlying Index, which consists of US dollar-denominated high yield corporate bonds with the potential for higher beta to the overall high yield corporate bond market. This ETF utilizes a passive investment approach and seeks to achieve results that closely resemble the Underlying Index's performance before fees and expenses. It employs a representative sampling indexing strategy, investing in a subset of securities within the index that closely mimic its risk and return characteristics. The Underlying Index is rebalanced monthly and is weighted by market capitalization, with no issuer allowed to exceed a 3% weight in the index. As of October 31, 2022, it comprised 604 bonds issued by 212 different issuers from various countries, with a significant percentage (84.06%) originating from the United States. Additionally, the fund may concentrate its investments in specific sectors or industries, with notable exposure to the consumer discretionary and communication services sectors as of October 31, 2022. It's important to note that the fund is not sponsored or endorsed by Solactive AG, the Index Provider. The ETF also engages in securities lending, with portfolio securities lent to brokers and other institutions, providing the fund with liquid collateral equal to at least 102% of the lent securities' value, marked to market daily and limited to 33 1/3% of the fund's total assets.
The correlation aspect of the Xtrackers High Beta High Yield Bond ETF (HYUP) is known for its strong connection to the performance of US dollar-denominated high yield corporate bonds. As an ETF that aims to track the performance of this specific segment of the corporate bond market, HYUP tends to exhibit a high correlation with the overall high yield corporate bond market. This correlation makes HYUP a valuable tool for investors looking to gain exposure to this asset class while managing risk and diversifying their portfolios.
The High Yield Corporate Bond ETF (HYUP) primarily invests in the US dollar-denominated high yield corporate bond market, with a focus on bonds that exhibit higher beta to the broader high yield corporate fixed income market. This sector-specific approach involves reviewing bond yields on a sector basis, with a preference for higher yielding bonds. HYUP is designed to track the performance of sub-investment grade corporate bonds from issuers with significant outstanding face value and specific maturity criteria. As of the latest data, a substantial portion of the underlying index consists of issuers from the United States, with notable concentrations in the consumer discretionary and communication services sectors, providing investors exposure to these industries. However, it's important to note that the fund may change its sector allocations over time based on the composition of the underlying index. Additionally, HYUP is not affiliated with or sponsored by Solactive AG, the index provider.
The exposure characteristic of the Xtrackers High Beta High Yield Bond ETF (HYUP) emphasizes its focus on the high-yield corporate bond market in the United States. By tracking the performance of US dollar-denominated high yield corporate bonds with higher beta to the overall high yield corporate bond market, HYUP offers investors a way to potentially capitalize on the higher-yielding segment of the fixed income market. As of the latest data available, a significant portion of the Underlying Index comprises issuers from the United States, with notable concentrations in the consumer discretionary and communication services sectors. For more detailed and up-to-date information on HYUP's exposure, investors can utilize ETF Insider's web app, which provides comprehensive data and visualization tools to assess market overlap, correlations, and more for US ETFs.
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4 min readThe HYUP ETF, or "Xtrackers High Beta High Yield Bond ETF," is an investment fund that focuses on high-yield bonds with a higher beta, potentially offering higher returns compared to traditional fixed-income securities. This article delves into the features and considerations of the HYUP ETF, helping investors understand the risks and rewards associated with high-yield bond investments and how it fits within a diversified portfolio strategy. Discover how the HYUP ETF can be a potential avenue for generating income while navigating the dynamics of the bond market.
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