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ETF Must-Read: Top 25 ETF-Related Questions Answered
Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Experts believe that the iShares US High Yield Bond Index ETF (XHY-T) holds a significant number of high-yielding issues with a relatively safe duration, making it a conservative option in the high-yield market. However, due to the narrowing of high-yield market yields, it may not be a top performer, but is still expected to be above average in the coming years. Its current yield advantage is also a point of consideration, as it should be higher than investment-grade bonds. Some experts are interested in taking a closer look at this ETF.

Consensus
Positive
Valuation
Fair Value
Similar
HYS, HYG
TOP PICK

Holds 1,157 issues, all high-yielding. Duration is only 3.4 years, so it's a safe way to play the high yield market. Caveat: the high-yield market and its yields have narrowed so sharply, so this will not be a great performer, but above average in coming years.

E.T.F.'s
DON'T BUY

In general, the high-yield bond market is yielding at least 300-400 bps above investment-grade bonds. This one should have that yield advantage, and if it doesn't, there's an issue. Yield is 5.8%, and the high-yield bond market is yielding over 8%. He's going to take a look at this ETF after the show.

E.T.F.'s
DON'T BUY

Holds investment-grade bonds? Doesn't like it, because "high-yield" means "junk." Never trust yield on a bond or mutual fund. Go beyond the current yield. XBB is fine or ZST.

E.T.F.'s
BUY
For high-yield bonds, you want to own most US bonds. He owns XHY which is hedged to the CAD. Vanguard and BMO also both offer strategies.
E.T.F.'s
DON'T BUY
For US high-yield bonds, he hedges the currency. No sense buying a US high-yield bond fund, if the CAD rises from the 75 cent level. There is a US high-yield bond ETF that hedges the currency so you don't get burned if the US dollar softens up. He doesn't think XHY hedges, but check. Do not buy US bonds unless you're going to have a currency hedge.
E.T.F.'s
COMMENT
The problem with high-yield bonds are junk bonds, but XHY has held up well. If you don't believe we'll fall into recession, high-yields will perform well. That said, he'd rather buy blue-chip stocks or their convertible debentures.
E.T.F.'s
DON'T BUY
These are high yield corporate junk bonds. It has a good yield, but it is exposed to more credit risk – many are in the energy sector. In times of crisis, this could be very dangerous. Be very careful here as this will trade like equity in a falling market. Yield 5.7%.
E.T.F.'s
DON'T BUY

He would look rather at emerging market bonds for income. The credit quality is higher as the US economy is late stage with higher probability of defaults.

E.T.F.'s
COMMENT

Which fund would you recommend for high-yield bonds? You are always dealing with US bonds in this one. He would probably look at the ZHY as well as the XHY. Remember, you are not getting the same premium for high-yield that you used to. He would rather buy a Covered Call. He isn’t a big fan of high-yield stuff.

E.T.F.'s
PAST TOP PICK

(Top Pick Mar 14’16, Up 15%) You have to take credit rate rise in the fixed income market. This one is hedged. He switched recently into HYI-T for an active manager.

E.T.F.'s
COMMENT

ETF’s for bonds are not like stocks. They don’t have great tracking. If you are going to buy a high yield bond ETF, only buy a Cdn$ hedged ETF. If the Cdn$ starts to rally, you are going to lose your whole return, and possibly more.

E.T.F.'s
BUY

A Canadian hedged version of the iShares High Yield Bond ETF. (The US$ version is HYG-N for those people who want to own this in US$, and who are more bullish on the US$.) If you have regular government bonds in your portfolio, this gives you high-yield bonds for picking up more income. It has done well in the last 12 months being up by about 13%. Thinks we are probably in the 6th inning of the high-yield bond market.

E.T.F.'s
COMMENT

Doesn’t think you need the Canadian hedge. You want to be exposed to US dollars. He would rather own iShares High Yield Corporate Bond (HYG-N). Also, if you have a credit crunch or an economic malaise of some sort, high-yield bonds tend to fall quicker than traditional government and investment grade corporate bonds. However, the economy looks to be recovering at this point and high-yield bonds are probably the place to be.

E.T.F.'s
BUY

Likes the spread on this. It has been hit a bit. He doesn’t mind that it is hedged, as you already have the risk of the underlying asset plus the currency risk. It is very attractive. He prefers corporate credits and risk credit to governments.

E.T.F.'s
TOP PICK

One of the few hedged things he has at the moment. He likes the US high-yield bond market. The spread has got huge on this. The yield on this is roughly around 7%. With a yield to maturity and a duration of about 4 years, this is pretty good. The hedge works, because you don’t have to take your currency risk. Also, you don’t get a withholding tax.

E.T.F.'s
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iShares US High Yield Bond Index ETF(XHY-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for iShares US High Yield Bond Index ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

iShares US High Yield Bond Index ETF(XHY-T) Frequently Asked Questions

What is iShares US High Yield Bond Index ETF stock symbol?

iShares US High Yield Bond Index ETF is a Canadian stock, trading under the symbol XHY-T on the Toronto Stock Exchange (XHY-CT). It is usually referred to as TSX:XHY or XHY-T

Is iShares US High Yield Bond Index ETF a buy or a sell?

In the last year, 1 stock analyst published opinions about XHY-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iShares US High Yield Bond Index ETF.

Is iShares US High Yield Bond Index ETF a good investment or a top pick?

iShares US High Yield Bond Index ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for iShares US High Yield Bond Index ETF.

Why is iShares US High Yield Bond Index ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is iShares US High Yield Bond Index ETF worth watching?

1 stock analyst on Stockchase covered iShares US High Yield Bond Index ETF In the last year. It is a trending stock that is worth watching.

What is iShares US High Yield Bond Index ETF stock price?

On 2024-03-28, iShares US High Yield Bond Index ETF (XHY-T) stock closed at a price of $16.37.