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HYBB: Credit Spreads Historically Low
Junk bonds offer higher risk for higher yield, but the overall junk bond market is too risky. HYBB is a unique ETF that holds BB-rated corporate bonds, offering more risk and yield. BB bonds have shown resiliency in turbulent times compared to its other junk-rated peers.
iShares BB Rated Corporate Bond ETF is a fixed income exchange traded fund. HYBB's holdings consist mostly of BB credits, with the largest sectoral allocation in consumer cyclicals. BB credits represent the first band of the high yield universe, and exhibit the lowest probabilities of default when compared to 'B' and 'CCC' names.
The iShares BB Rated Corporate Bond ETF (HYBB) provides exposure to high-quality high yield bonds but has historically underperformed the broader high-yield market. Investors seeking high-quality high-yield bonds should consider the VanEck Fallen Angel High Yield Bond ETF (ANGL) instead. Fallen angels, like those included in the ANGL ETF, have shown better credit characteristics and the potential for outperformance.
HYBB is a less risky alternative to other junk bond ETFs like JNK, investing primarily in higher-tier BB rated bonds. With a 30-day SEC yield of about 7.1%, HYBB offers a higher yield than investment-grade corporate bond ETFs like VTC. HYBB is a suitable investment for those who believe in a mild recession and want to take risks in the market while avoiding extreme risks.
The iShares BB Rated Corporate Bond ETF invests based on the ICE BofAML BB US High Yield Constrained Index. The iShares iBoxx $ High Yield Corporate Bond ETF invests based on the Markit iBoxx USD Liquid High Yield Index.
FAQ
- What is HYBB ETF?
- Does HYBB pay dividends?
- What stocks are in HYBB ETF?
- What is the current assets under management for HYBB?
- What is HYBB average volume?
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- What is HYBB inception date?