HYDB ETF

HYDB focuses on high-yield corporate bonds with higher quality and wider spreads. This results in an above-average 6.9% dividend yield, and consistent outperformance to peers. HYDB's strategy has worked in the past and will, I believe, continue to work in the future, making the fund a solid investment opportunity.

iShares High Yield Systematic Bond ETF pursues fixed income investments in junkier markets. Recent market conditions have increased credit spreads. The ETF consists mostly of BB or B rated instruments, with recent rise in credit spreads offsetting benefits from lower prevailing rates associated to recession chatter. The negative correlation between spreads and risk-free rates limits the appeal of high-yield credit in the current market.

The iShares High Yield Bond Factor ETF seeks to outperform the broader high-yield corporate bond market by focusing on quality and value factors. HYDB has performed well compared to other high-yield bond ETFs like HYG and JNK, highlighting the potential benefits of its factor-based investment strategy. Investing in HYDB offers advantages such as superior risk-adjusted returns, a lower expense ratio, and monthly dividend distributions, but it also carries credit risk, interest rate risk, and liquidity risk.