Opinions Christine Horoyski
iShares Hi Yield Corp Bond ETFHYGDON'T BUYJul 30, 2009
An ETF that is designed to track the index of the US high yield market. The yield is anywhere from 9% to 10%. There is also currency risk attached to this because it is in US$. You have interest rate volatility and credit risk associated with it along with a currency risk. You are better off with a very strong fixed income active manager.
Christine HoroyskiUnknown
$83.10
Stock price when the opinion was issued
$80.31
As of May 29, 2026. Market Open.
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COMMENT
One of the biggest risks is the credit markets in the sheer amount of debt that is sitting at investment-grade that will get downgraded. This is a high yield bond ETF. $75 to $80 is probably the range that you want to nibble away at. There will be some value developing in the high yield space.
E.T.F.'s
HOLD
The high-yield bond market in the US is interesting. In January everybody thought the troubles in the high-yield bond market would echo itself into something that would look more like a sub prime crisis in 2008. He had disagreed with this, so has been very Long on this all year. The bond and credit markets have done really well over the last few months, so he would recommend you shorten your duration in bond markets and increase your credit risks.
Tyler MordyOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick June 7/10. Up 16.75%.) US High Yield Corp. Bond ETF. Switched to the US High Yield Bond Index Fund (XHY-T) because it is hedged back to the Cdn $. Returns are almost identical.
Hank CunninghamOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick Oct 30/09. Up 16.1%.) US High-yield corporate bonds ETF. (Top Pick is the Canadian version XHY-T.)
Hank CunninghamOwned
E.T.F.'s
WEAK BUY
Hi Yield Corp Bond ETF. Diversification reduces risk of holding low-investment-grade bonds. Gives full exposure to high yields as an asset class. Higher asset class has performed very well over the last decade. Prefers Canadian hedged versions such as the High Yield Bond ETF (CHB-T) because of currency changes, especially in RRSPs.
E.T.F.'s
PAST TOP PICK
(Top Pick Oct 20/09, Up 1% because of yield) They converted to a Canadian dollar hedged fund in January. He thinks you will get double-digit returns out of this fund.
Hank CunninghamOwned
E.T.F.'s
TOP PICK
Hedged in Canadian $ and well diversified. Default rate has gone down significantly in the US. Reasonable chance of double-digit returns. Yield to maturity of 9.75%
Hank CunninghamOwned
E.T.F.'s
BUY
High-yield bonds is a place you want to be when coming out of a recession into a bit of a recovery. Has had quite a bit of a run. Spreads between these and treasuries are now tightening a little. Could still be room to go. Pays around 10% yield.
Stan WongOwned
E.T.F.'s
