
TSE:XHY
This summary was created by AI, based on 1 opinions in the last 12 months.
The iShares US High Yield Bond Index ETF (XHY) is a compelling option for investors anticipating rate cuts and a slowdown in economic growth. In such an environment, experts suggest looking at high yield bond ETFs like XHY or ZHY, which can offer higher income potential, albeit with an acceptance of increased business cycle risk. This option is intriguing for those who are comfortable navigating the volatility of high-yield investments. Additionally, the review highlights the importance of aligning investment choices with personal risk tolerance and income goals, suggesting that XHY could be particularly attractive during periods of softness in economic indicators.
Because governments are holding interest rates down, high yield is attracting people. Investors are looking at high yield investing as a replacement for equity investing. 6.5% yield is the lowest in history in high yield bonds. It makes sense in a registered account if you want equity market risk. ZHY-T is an alternative. Both give you exposure to a similar basket of companies, which are the worst credit rated companies out there. The pension funds need these yields and this will play out for the next couple of years.
(A Top Pick Jan 9/12. Up 9.45%.) Still likes them.