TSE:XHY

iShares US High Yield Bond Index ETF (XHY.TO)

16.40
+0.02 (0.12%)
as of Jun 4, 2026, 7:59:59 pm Market Open.
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Investor Insights
star iconJun 3, 2026, 12:00 am

This summary was created by AI, based on 1 opinions in the last 12 months.

The iShares US High Yield Bond Index ETF, symbol XHY-T, is generally seen as a viable investment for those anticipating rate cuts and expecting softer growth conditions. Analysts suggest that while there are alternatives like ZLC or XLB for conservative investors, XHY-T attracts attention for higher-income seekers willing to embrace some business cycle risks. The fund primarily focuses on high-yield bonds, which often come with increased risks but also the potential for higher returns. Investors looking at this ETF should balance their risk tolerance against the expected economic backdrop and interest rate movements. Overall, XHY-T represents an interesting option for those with a specific investment strategy tailored towards high yield opportunities in a changing economic environment.

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Consensus
Positive
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Valuation
Fair Value
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ZHY
BUY
US High Yield Bond Index Fund for 6 months to 1 year? Likes the product but this is a long-term product. Long-term, the return should be strong. A good risk/return trade-off.
PARTIAL SELL
US High Yield Bond market has actually had a massive rebound since their financial crisis. What worries him about the sector is that there are a lot of relatively weak quality issuers who have been raising money in a 6%-7% range. This is way too cheap a coupon for some of them to pay. If you own, consider scaling back.
BUY
US High Yield Bond Index Fund ETF. If you like high-yield bonds and/or corporate bonds, this is a good way to do it. Gives you a large diversified basket with a higher return.
TOP PICK
(Top Pick Jun 25/10, Up 13.79%) US high yield bonds, hedged Canadian $ to US. You are going for the distribution. Little under 7%. Not much downside risk.
PAST TOP PICK
High yield corporate bond US Hedge to Cdn$. (A Top Pick Apr 27/10. Up 12.75%) Liked high yield bonds for some time. Expects returns from high yield funds from this point on will not be as attractive. Probably won’t get double digit returns, but probably in the 7% area.
TOP PICK
(Top Pick May 3/10, Up 8.71%) US High Yield Bonds, no exposure to currency. Yield about 7.5%. Close to long term average.
DON'T BUY
The problem is ‘high yield’ mean junk bond, which he has never been a fan of. They should be called ‘high risk’. If he wants yield, he wants investment grade bonds. One should go on the ETF company’s web site and look at the bonds and the duration.
TOP PICK
(A Top Pick Feb 25/10. Up 13%.) US High Yield Bond Index Fund ETF. Mimicking the US high yield index. Average yield to maturity is about 6.83% right now. Will probably produce double-digit returns this year on the strength of falling default rates. As people continue to look for yields, it will drive the spreads narrower against government’s.
DON'T BUY
US High Yield Bond Index Fund ETF. As government interest rates go up, high yield bonds will be affected. You also have to consider actual spread of the bonds versus the treasury index. Doesn’t think this will continue to provide the performance we have had over the last 2 years. Would prefer being in equities.
COMMENT
US High Yield Bond Index Fund ETF. If you are sensitive to rate hikes, there will be more in Canada than the US so this is one solution. You could also consider Cdn corporate bond units such as Cdn Corp Bond ETF (XCB-T) or HYBrid Bond Index Fund (XHB-T).
TOP PICK
US High Yield Bond Index Fund ETF. Hedged which takes out currency risk. High yield offers relative value over time. Yield over government currently is still above average and credit quality is doing very well.
TOP PICK
US High Yield Bond Index Fund. (Same as Past Top Pick but hedged in Cdn$.) Thinks the recovery in the economy will lower default rates and the spread from high-yield bonds to US government bonds is going to narrow which will cause some relative capital gains so is looking for above average returns. Average yield is 7.33%.
DON'T BUY
Junk bonds. He is not a big fan of these. It’s not just interest rate risk but default risk. You have to assume a certain number of them will default. Currency hedged.
TOP PICK
US High Yield Bond Index Fund. Thinks high yield, as an asset class, will outperform investment grade bonds over the next 12 months. Yields are in the area of 8% versus 3% or less in the overall bond market.
COMMENT
US High Yield Bond Index ETF. Really a copy of US version Hi Yield Corp Bond ETF (HYG-N). This one pays 7.25% while the US one pays 8.7%. If you think economy is going to be in rough shape, you don't want to own it but otherwise not a bad space to be in.
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