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Xtrackers USD High Yield Corporate Bond ETF
HYLBFinancial ServicesAMEXUS
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HYLB is a simple, cheap high-yield corporate bond ETF. It compares unfavorably to its high-yield peers, with a slightly below-average 6.5% yield, consistent underperformance. Although these disadvantages are small, there are fewer advantages. On net, the fund compares unfavorably to peers.
Option overlay funds (mostly covered call ETFs) play a critical role in my income-oriented portfolio. Through these vehicles I can enhance my overall portfolio yield and obtain exposure to asset classes that tend to be underrepresented in income portfolios. In this context, NEOS Investments vehicles are my favorites.
Xtrackers USD High Yld Corporate Bd ETF offers efficient high-yield exposure at a 0.05% expense ratio, outperforming peers on cost. HYLB's 2.8-year duration and BB/B credit focus provide moderate duration risk, but credit spreads capable of driving price changes have already normalized to pre-war levels. Geopolitical risks, continued confusion in communication, and USD headwinds limit the appeal of HYLB whether the war ends on these talks or not.
