XHYC ETF

With summer travel and leisure spending underway, investors can utilize targeted high-yield sector investing to chase returns. Targeting a specific high-yield sector can provide a great deal of value to investors seeking portfolio diversification.

Although there was an increase in macroeconomic uncertainty in March, high yield industry sectors continued to show potential for growth. BondBloxx commentary pointed out that in March, all seven high yield industry sectors experienced positive total return performance.

Despite any potential headwinds, the U.S. economy is continuing to show signs of resilience. For the week ended March 16, the Labor Department noted that claims for state unemployment benefits were falling.

It's been a very good year for U.S. high yield. In fact, BondBloxx Investment Management has noted that riskier fixed income assets have outperformed U.S. Treasuries.

With 2024 just around the corner, the odds of a deep recession hitting the U.S. in 2023 has dropped considerably. Despite high interest rates and persistently high inflation, the U.S. economy remains resilient.

High yield did well across multiple sectors in the U.S., according to the BondBloxx Fixed Income Monthly Update for August. Six of the seven high yield industry sectors generated positive returns in August.

U.S. high yield rebounded this year after experiencing the worst total return year in 2022 since the Global Financial Crisis. The doubling of yields in 2022 have reset valuations to more attractive levels.

After an historically bad year for bonds in 2022, high yield bond issuers entered 2023 from a position of strength. And according to fixed income specialist BondBloxx, they're likely to remain resilient entering the second half of the year.

Despite high inflation, U.S. consumers are still shopping. The Department of Commerce reported that retail sales rose by 0.4% in April from March.