
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 receiving attention from experts in the context of investing strategies amid changing economic conditions. Those anticipating rate cuts and a slowdown in growth may prefer funds like ZLC or XLB. However, investors seeking higher income and who are comfortable accepting some business cycle risk may find opportunities in high-yield bond ETFs, including XHY and ZHY. Therefore, this ETF is positioned as a viable option for those looking to capitalize on yield in a potentially shifting economic landscape. The discussion reflects a broader view on the importance of strategic asset allocation and risk assessment when considering investments in high-yield bonds.
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.