The iShares iBoxx Global ex-U.S. High Yield Corporate Bond ETF (HYXU) is managed by BlackRock, one of the world's largest asset management firms. Established to track the Markit iBoxx Global Developed Markets ex-US High Yield Index, HYXU provides investors with exposure to high yield corporate bonds denominated in euros, British pounds sterling, and Canadian dollars, issued by companies domiciled in developed markets outside the United States. With a commitment to passive indexing, BlackRock aims to achieve the fund's investment objective by investing at least 80% of its assets in component securities of the Underlying Index, offering investors a cost-effective way to gain exposure to global high yield bonds.
While the primary objective of the iShares Global ex-U.S. High Yield Corporate Bond ETF (HYXU) is to track the performance of the Markit iBoxx Global Developed Markets ex-US High Yield Index, it does not directly distribute dividends. Instead, HYXU's returns are typically generated through the interest income received from the underlying high yield corporate bonds it holds. Investors in HYXU may receive periodic interest payments, but the ETF itself does not pay out dividends in the traditional sense. Investors' eligibility for interest income from HYXU depends on the bonds held within the ETF's portfolio. These bonds are denominated in euros, British pounds sterling, and Canadian dollars and are issued by high-yield corporate entities from developed markets outside the United States. The ETF aims to provide exposure to this global ex-U.S. dollar high yield corporate bond market, primarily investing in bonds with at least $1 billion in face value. Since HYXU follows a passive or indexing approach, it seeks to replicate the performance of its underlying index and does not actively select or manage bonds. The ETF invests at least 80% of its assets in the component securities of the underlying index, with the goal of closely tracking its returns.
HYXU, or the iShares iBoxx Global Developed Markets ex-US High Yield ETF, aims to track the Markit iBoxx Global Developed Markets ex-US High Yield Index. This index consists of high yield corporate bonds denominated in euros, British pounds sterling, and Canadian dollars. These high yield bonds, also known as junk bonds, are issued by companies domiciled in developed markets outside the United States, with at least $1 billion face value of debt outstanding. The index is market value-weighted with a cap of 3% on each issuer and includes a variety of industries, with a significant representation from the financials and telecommunications sectors as of October 31, 2022. HYXU uses a passive indexing approach, seeking to replicate the index's performance by investing at least 80% of its assets in component securities of the Underlying Index and no more than 10% in futures, options, and swaps contracts. This ETF provides investors with exposure to high yield corporate bonds in developed markets outside the U.S. while maintaining a low-cost, index-tracking strategy.
The correlation aspect of the iShares iBoxx Global ex-U.S. High Yield Corporate Bond ETF (HYXU) is critical for investors looking to understand its behavior in relation to the global ex-U.S. high yield corporate bond market. As HYXU tracks the Markit iBoxx Global Developed Markets ex-US High Yield Index, its correlation with this index is expected to be strong. This correlation provides investors with insights into how well HYXU replicates the performance of the underlying index, making it a valuable tool for those seeking exposure to non-U.S. high yield corporate bonds. To delve deeper into the correlations and overlaps with other assets, investors can utilize the ETF Insider web app, which offers a simple visualization tool for comprehensive data analysis.
The iShares International High Yield Corporate Bond ETF (HYXU) focuses on tracking the Markit iBoxx Global Developed Markets ex-US High Yield Index, which consists of high-yield corporate bonds primarily denominated in euros, British pounds sterling, and Canadian dollars. These bonds are often referred to as junk bonds due to their higher risk profile. The ETF provides exposure to international high-yield corporate bonds from developed markets, with a significant representation from the financials and telecommunications industries or sectors as of October 31, 2022. HYXU offers diversification and potential for higher yields but carries inherent credit risk associated with high-yield bonds.
The exposure characteristic of the iShares International High Yield Corporate Bond ETF (HYXU) reflects its focus on the global high yield corporate bond market, excluding U.S. dollar-denominated bonds. HYXU seeks to track the Markit iBoxx Global Developed Markets ex-US High Yield Index, which consists of high yield corporate bonds denominated in euros, British pounds sterling, and Canadian dollars. These bonds are issued by companies in developed markets outside of the United States, and as of October 31, 2022, a significant portion of the index is represented by securities in the financials and telecommunications industries. HYXU provides investors with an opportunity to access non-U.S. high yield corporate bonds and diversify their fixed income portfolio.
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