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HYG ETF — Holdings & Analysis

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a $15.88 billion fund seeking to replicate the performance of an index composed of U.S. dollar-denominated, high yield corporate bonds. With an expense ratio of 0.49%, HYG provides exposure to a broad basket of over 1300 high-yield corporate bonds. A key differentiator is its substantial allocation to Utilities (99.6%), offering potentially stable income, and its significant U.S. exposure (83.4%). Past performance does not guarantee future results.

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) ETF — Price, Holdings & Analysis

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a $15.88 billion fund seeking to replicate the performance of an index composed of U.S. dollar-denominated, high yield corporate bonds. With an expense ratio of 0.49%, HYG provides exposure to a broad basket of over 1300 high-yield corporate bonds. A key differentiator is its substantial allocation to Utilities (99.6%), offering potentially stable income, and its significant U.S. exposure (83.4%). Past performance does not guarantee future results.

ETF Overview

The iShares iBoxx $ High Yield Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds.
HYG aims to mirror the investment outcomes of an index that consists of U.S. dollar-denominated high-yield corporate bonds. This ETF offers investors access to a diversified portfolio of below-investment-grade corporate debt, often referred to as "junk bonds." These bonds typically offer higher yields than investment-grade bonds to compensate for their increased credit risk. HYG's portfolio is constructed with 1322 holdings, providing broad exposure to the high-yield market. While the fund is heavily concentrated in Utilities (99.6%), it also has smaller allocations to Real Estate (0.4%). The fund's top holding is BlackRock Cash Funds Treasury SL Agency (XTSLA) at 1.25%. Geographically, HYG focuses on the United States (83.4%), with smaller allocations to Canada (4.4%), the United Kingdom (2.3%), Luxembourg (1.3%), and Japan (1.3%). This ETF is suitable for investors seeking income and willing to accept higher credit risk in exchange for potentially higher yields. Past performance does not guarantee future results.

Risk Metrics

HYG, being a high-yield corporate bond ETF, carries inherent credit risk, as the issuers of the underlying bonds may default on their payments. While HYG offers diversification with 1322 holdings, its concentration in the Utilities sector (99.6%) introduces sector-specific risk. Any downturn in the utilities industry could disproportionately impact HYG's performance. The fund's beta of 0.64 (3Y) indicates that it is less volatile than the overall market. The expense ratio of 0.49% will create a drag on performance over time, reducing net returns to investors. Investors should carefully consider their risk tolerance and investment objectives before investing in HYG. Past performance does not guarantee future results.

Expense Ratio

0.49%

Top Holdings

Sector Allocation

  • Utilities: 99.6%
  • Real Estate: 0.4%
  • United States: 83.4%
  • Canada: 4.4%
  • United Kingdom: 2.3%
  • Luxembourg: 1.3%
  • Japan: 1.3%
  • Netherlands: 1.2%
  • France: 1.1%
  • Other: 1.0%
  • Cayman Islands: 0.9%
  • Ireland: 0.7%

Dividend Yield

4.83%
  • <a href="/etf/dyfi">IDX Dynamic Fixed Income ETF (DYFI)</a> — 1.12% expense ratio
  • <a href="/etf/jpib">JPMorgan International Bond Opportunities ETF (JPIB)</a> — 0.50% expense ratio
  • <a href="/etf/bab">Invesco Taxable Municipal Bond ETF (BAB)</a> — 0.28% expense ratio
  • <a href="/etf/pmio">PGIM Municipal Income Opportunities ETF (PMIO)</a> — 0.25% expense ratio
  • <a href="/etf/agg">iShares Core U.S. Aggregate Bond ETF (AGG)</a> — 0.03% expense ratio
  • <a href="/etf/lqd">iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)</a> — 0.14% expense ratio
  • <a href="/etf/ibij">iShares iBonds Oct 2033 Term TIPS ETF (IBIJ)</a> — 0.10% expense ratio
  • <a href="/etf/secu">iShares Securitized Income Active ETF (SECU)</a> — 0.40% expense ratio
  • <a href="/etf/igv">iShares Expanded Tech-Software Sector ETF (IGV)</a> (Equity) — 0.39% ER
  • <a href="/etf/dynf">iShares U.S. Equity Factor Rotation Active ETF (DYNF)</a> (Equity) — 0.26% ER
  • <a href="/etf/eem">iShares MSCI Emerging Markets ETF (EEM)</a> (Equity) — 0.72% ER
  • <a href="/etf/uscl">iShares Climate Conscious & Transition MSCI USA ETF (USCL)</a> (Equity) — 0.08% ER
  • <a href="/etf/defa">iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA)</a> (Equity) — 0.35% ER
  • <a href="/etf/amca">iShares Russell 1000 Pure U.S. Revenue ETF (AMCA)</a> (Equity) — 0.15% ER

Risk Metrics

  • Beta: 0.64

Questions & Answers

What is HYG and what does it track?

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is designed to track the investment results of the Markit iBoxx USD High Yield index. This index is composed of U.S. dollar-denominated, high yield corporate bonds, often referred to as "junk bonds." HYG provides investors with exposure to a diversified portfolio of these bonds, offering the potential for higher income compared to investment-grade bonds. The fund's objective is to closely mirror the performance of its underlying index, before fees and expenses. As of March 31, 2026, HYG has $15.88 billion in assets under management.

What is the expense ratio for HYG?

The expense ratio for HYG is 0.49%. This means that for every $10,000 invested in HYG, the fund charges $49 annually to cover its operating expenses. While this is a cost to consider, it's important to weigh it against the potential benefits of diversification and professional management that HYG offers. The expense ratio is slightly higher than the category average of 0.44% for similar high-yield bond ETFs. the may be worth researching expense ratio as one factor among many when evaluating HYG.

What are the top holdings in HYG?

As of March 31, 2026, the top holding in HYG is BlackRock Cash Funds Treasury SL Agency (XTSLA), comprising 1.25% of the fund's total assets. While specific bond holdings fluctuate, this allocation to a cash management vehicle provides liquidity and stability within the portfolio. The fund's remaining assets are spread across a diverse range of over 1300 high-yield corporate bonds. Investors should consult the fund's official website for the most up-to-date list of holdings and their respective weights.

Is HYG a good long-term investment?

Whether HYG is a suitable long-term investment depends on an individual's investment objectives, risk tolerance, and time horizon. HYG offers exposure to the high-yield corporate bond market, which can provide attractive income potential. However, high-yield bonds also carry a higher degree of credit risk compared to investment-grade bonds. The fund's beta of 0.64 suggests it is less volatile than the overall market. Investors should carefully consider these factors and consult with a financial advisor before making any investment decisions. Past performance does not guarantee future results.

How does HYG compare to similar ETFs?

HYG competes with other high-yield corporate bond ETFs, such as JNK and SPDR Bloomberg High Yield Bond ETF (JNK). HYG has $15.88 billion in AUM, making it one of the larger ETFs in this category. Its expense ratio of 0.49% is comparable to some of its peers. The key difference lies in the specific index each ETF tracks and the resulting portfolio composition. Investors should compare the underlying indices, credit quality, and sector allocations of these ETFs to determine which best aligns with their investment strategy. Past performance does not guarantee future results.

Does HYG pay dividends?

Yes, HYG distributes dividends to its shareholders. As of March 31, 2026, HYG has a dividend yield of 4.83%. The dividend yield represents the annual dividend income an investor can expect to receive as a percentage of the fund's share price. It's important to note that dividend yields can fluctuate over time due to changes in interest rates and the performance of the underlying bonds. These dividends are typically paid monthly, providing a regular income stream for investors.