USHY: 7.33% On Paper, 6.6% In Reality
The iShares Broad USD High Yield Corporate Bond ETF, known as USHY, presents a headline yield of 7.33%, but its effective yield is significantly lower at 6.6%. The ETF's portfolio is primarily composed of BB and B-rated bonds, with a median yield to maturity of 6.54%. A substantial portion of USHY's holdings, over 63%, yield less than 7%, indicating a disparity between advertised and actual yields.
- ▪USHY has a total assets under management (AUM) of $26.7 billion.
- ▪The ETF's portfolio is dominated by BB and B-rated bonds.
- ▪Only 6.61% of USHY's holdings yield more than 10%.
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