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HYG ETF — Holdings & Analysis

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a significant player in the fixed income market, managing $17.59 billion in assets under management. It aims to replicate the performance of a benchmark composed of U.S. dollar-denominated corporate bonds with lower credit ratings, typically offering higher yields. With an expense ratio of 0.49% and a current dividend yield of 4.76%, HYG presents a specific exposure profile, notably concentrated with 99.6% allocated to the Utilities sector according to the provided data.

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

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a significant player in the fixed income market, managing $17.59 billion in assets under management. It aims to replicate the performance of a benchmark composed of U.S. dollar-denominated corporate bonds with lower credit ratings, typically offering higher yields. With an expense ratio of 0.49% and a current dividend yield of 4.76%, HYG presents a specific exposure profile, notably concentrated with 99.6% allocated to the Utilities sector according to the provided data.

ETF Overview

The iShares iBoxx $ High Yield Corporate Bond ETF aims to replicate the performance of a specific market benchmark. This benchmark comprises corporate bonds with lower credit ratings, issued in U.S. dollars, which typically offer higher yields in exchange for increased risk.
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is designed to provide exposure to the U.S. high yield corporate bond market. Its investment objective is to track the performance of a specific market benchmark, which comprises corporate bonds issued in U.S. dollars that carry lower credit ratings. These bonds are often referred to as 'junk bonds' and typically offer higher yields compared to investment-grade bonds, compensating investors for the increased credit risk involved. As of 2026-06-30, HYG holds a substantial $17.59 billion in assets, indicating its prominence in this segment of the fixed income landscape. The ETF's strategy involves investing in a portfolio that mirrors the risk and return characteristics of its underlying index. A key characteristic derived from the provided data is its highly concentrated sector allocation, with 99.6% of its exposure directed towards the Utilities sector and a minor 0.4% in Real Estate. This extreme concentration suggests that while the fund aims for high yield corporate bonds, its actual underlying exposure, based on the provided data, is almost exclusively tied to the performance and creditworthiness of high-yield issuers within the Utilities industry. This makes HYG distinct from broadly diversified high-yield bond ETFs that typically spread exposure across numerous sectors.

Risk Metrics

The risk profile of HYG is significantly shaped by its mandate to invest in high yield corporate bonds and, notably, its highly concentrated sector exposure. High yield bonds inherently carry greater credit risk compared to investment-grade bonds, meaning there is a higher probability of default by the issuing companies. This risk is amplified by the fund's extreme concentration, with 99.6% of its allocation in the Utilities sector and only 0.4% in Real Estate, according to the provided data. Such a concentrated sector weighting means that the ETF's performance is heavily dependent on the financial health and regulatory environment of high-yield companies within the Utilities industry. Any adverse developments specific to this sector could have a disproportionately large impact on HYG's value. Furthermore, the provided data indicates a 'Holdings Count: 1', which, if interpreted literally for an index-tracking ETF, would imply an unprecedented level of single-security concentration risk. The fund's 3-year Beta of 0.65 suggests it has historically exhibited less volatility than the broader market, which is typical for fixed income assets, but this does not mitigate the specific credit and sector concentration risks. The expense ratio of 0.49% represents a recurring cost that can erode returns over time, particularly in a lower-return fixed income environment.

Expense Ratio

0.49%

Sector Allocation

  • Utilities: 99.6%
  • Real Estate: 0.4%
  • United States: 84.5%
  • Canada: 3.8%
  • United Kingdom: 2.1%
  • Luxembourg: 1.3%
  • Other: 1.1%
  • France: 1.1%
  • Netherlands: 1.1%
  • Japan: 1.0%
  • Cayman Islands: 0.8%
  • Ireland: 0.7%

Dividend Yield

4.76%

Risk Metrics

  • Beta: 0.65

Questions & Answers

What is HYG and what does it track?

HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, is an exchange-traded fund issued by iShares. It falls under the Fixed Income asset class and aims to replicate the performance of a specific market benchmark. This benchmark is composed of corporate bonds with lower credit ratings, denominated in U.S. dollars, which are known for offering higher yields in exchange for increased risk. The fund was incepted on 2007-04-04 and currently manages $17.59 billion in assets, providing investors with a vehicle to access the high yield corporate bond market.

What is the expense ratio for HYG?

The expense ratio for HYG is 0.49%. This figure represents the annual cost of investing in the fund, expressed as a percentage of the assets managed. When compared to a hypothetical category average for similar fixed income ETFs, which might be around 0.44%, HYG's expense ratio is slightly higher. This cost is deducted from the fund's assets and can influence the net returns experienced by investors over time. Understanding this recurring fee is crucial for evaluating the long-term cost-effectiveness of the ETF.

What are the top holdings in HYG?

The provided data indicates that HYG has a 'Holdings Count: 1', which is highly unusual for an ETF designed to track a broad index of corporate bonds. Typically, such funds hold numerous individual bonds to achieve diversification. However, the sector allocation data offers insight into its underlying exposure, showing an extreme concentration with 99.6% allocated to the Utilities sector and 0.4% to Real Estate. This suggests that while individual bond names are not specified in the provided data, the fund's exposure is overwhelmingly dominated by high-yield corporate bonds within the Utilities industry.

Is HYG a good long-term investment?

Evaluating HYG as a long-term investment involves considering its specific characteristics and the inherent risks of high yield bonds. The ETF offers a 4.76% dividend yield and has a 3-year Beta of 0.65, indicating lower historical volatility than the broader market. However, its strategy of investing in lower-rated corporate bonds means it carries higher credit risk, and its performance is heavily influenced by economic cycles and corporate default rates. The extreme concentration in the Utilities sector (99.6%) also introduces significant sector-specific risk. Investors should weigh these factors against their personal risk tolerance and portfolio objectives. Past performance does not guarantee future results.

How does HYG compare to similar ETFs?

HYG distinguishes itself among high yield corporate bond ETFs through its substantial size, with $17.59 billion in AUM, making it one of the largest in its category. Its expense ratio of 0.49% is a key metric for comparison, potentially being slightly higher than some broad fixed income category averages. The fund's strategy targets U.S. dollar-denominated high yield corporate bonds, aiming to replicate a specific benchmark. However, a critical differentiator based on the provided data is its highly concentrated sector allocation, with 99.6% in Utilities, which is atypical for a broad high-yield index fund and sets it apart from more diversified competitors in terms of sector exposure. It also offers a 4.76% dividend yield.

Does HYG pay dividends?

Yes, HYG does pay dividends. As of 2026-06-30, the iShares iBoxx $ High Yield Corporate Bond ETF has a dividend yield of 4.76%. This yield is a direct reflection of the income generated by the underlying high yield corporate bonds held within the fund's portfolio, which are selected for their higher coupon payments to compensate for increased credit risk. Investors seeking regular income from their fixed income allocations often consider ETFs with such dividend characteristics.