iShares 0-5 Year High Yield Corporate Bond ETF

SHYG tracks a market-value-weighted index of high-yield USD-denominated bonds with 0-5 years remaining in maturity.

We think underlying metrics for inflation will continue to be stubborn. The key is that inflation expectations remain a little high, and will need an exogenous inflationary factor, namely oil, to stay down for a while in order for re-anchoring. If expectations can be moved without taking a hit to the economy, with a lower oil price actually being good for the economy too, a soft landing can be engineered.

SHYG: Expectations Say Inflation Wheel Is Still Turning

The really core and sticky elements of inflation are ticking up, and oil may end up being a false friend. We also still have issues with exposure to credit spreads, considering how low they are historically. With duration making the ETF more sensitive to YTM changes and the propensity for markets to be wishful around Fed policy, we still aren't crazy about SHYG.

SHYG: Credit Spreads Still Relatively Low

SHYG is a moderate duration fixed income ETF, and we believe that it will be a higher for longer environment, which is bearish for longer duration fixed income. We used to complain about the credit spreads being too low, but now we acknowledge reflexivity benefits. However, reflexivity in high yield simply makes the higher for longer case more likely, so there's no angle there, and reflexivity benefits are already priced in.

SHYG: Reflexivity Benefits Also Mean More Duration Risk

iShares U.S. Medical Devices ETF

iShares Global Tech ETF

Markets are increasingly volatile, making the “Sell in May and Go Away” mantra particularly relevant. But that comes with a hidden benefit — the opportunity to snag the best ETFs to buy in May for a discount.

The 3 Best ETFs to Buy in May 2024

SPDR Bloomberg Short Term High Yield Bond ETF

On this week's episode of ETF Prime, host Nate Geraci was joined by VettaFi Head of Research Todd Rosenbluth to discuss polling results from VettaFi's Fixed Income Symposium. Afterward, Richard Kerr, Partner at K&L Gates, brought a legal analysis to multi-share class structure filings.

ETF Prime: Rosenbluth on Fixed Income Polling and More

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF

Invesco Senior Loan ETF

iShares iBoxx High Yield Corporate Bond ETF

 SPDR Blackstone Senior Loan ETF

iShares Broad USD High Yield Corporate Bond ETF

The largest high yield bond ETFs have been out of favor for much of 2024. However, many advisors recently told VettaFi they think the style will perform best going forward.

Taking on More Credit and Less Rate Risk

Lowe's

Steelcase

Though 2024's rate cut prospects remain somewhat uncertain, with Federal Reserve officials flip-flopping between “higher for longer” and planned drawdowns, preparing your portfolio for the inevitability is still a useful exercise. Remember that investors waiting on the sidelines and keeping cash in expectation of a massive market crash over the past year missed out on more than 30% gains in the S&P 500.

The Rate Drop Jackpot: 3 Stocks to Snag on the Next Fed Cut

SPDR Bloomberg High Yield Bond ETF

Oaktree Specialty Lending

SPDR Portfolio High Yield Bond ETF

Leading credit investors believe that the case for high-yield bonds remains strong, with a high expected return.

Why High-Yield Bonds Could Outperform: Pick 7.5%-Yielding SPHY

iShares Global Healthcare ETF

SPDR Portfolio Small Cap ETF

ETF investing isn't necessarily the most fun way to allocate capital, but playing stock jockey isn't always a wise bet. Instead, using the top ETFs for 2024 as a portfolio anchor—whether retirement or taxable brokerage—helps offset and diversify the risk associated with individual stock picking.

Market Mayhem: 3 ETFs to Anchor Your Investments in 2024

The iShares 0-5 Year High Yield Corporate Bond ETF has a higher duration than desired for those who believe the inflation battle is not over. The portfolio has a duration risk but is mitigated by a high yield to maturity of 7.78%, although we worry about credit spreads too. We think markets are ahead of themselves and are not considering SHYG for the time being.

SHYG: Wages And Expectations, Inflation Won't Go Down

iShares 0-3 Month Treasury Bond ETF

iShares Short-Term National Muni Bond ETF

Bond ETFs are a fickle bunch. Inverted yield curves mean many of the biggest options saw massive drawdowns this year.

3 Short-Term Bond ETFs Your Portfolio Needs Today

Junk debt issuers face refinancing risk into "higher for longer" rates. iShares 0-5 Year High Yield Corporate Bond ETF provides access to high yield with less duration risk. SHYG holds a diversified portfolio of short-term high-yield bonds with predominantly BB and B credit ratings.

SHYG: Good Fund But Credit Risk Is Still Questionable Now

Aberdeen Standard Precious Metals Basket Trust

Schwab Strategic Trust-Schwab International Dividend Equity ETF

iShares 20+ Year Treasury Bond ETF

Vanguard Real Estate ETF

Vanguard Total Stock Market ETF

Finding ETFs for long-term growth should be your priority if you're a newer investor. Even for those actively trading stocks to beat the marketing, holding a basket of ETFs for diversification is the best way to balance a portfolio and protect against sector-specific risk.

7 ETFs to Buy for Diversified Exposure and Long-Term Growth

The junk bond market is approaching a $785 billion maturity wall, causing concerns for junk-rated companies trying to refinance amid interest rate hikes. The iShares 0-5 Year High Yield Corporate Bond ETF holds short-term junk bonds and may be negatively impacted by the upcoming maturity wall. Junk bonds, including short-term ones, are overpriced and face challenges in refinancing due to high interest rates and potential economic slowdown.

SHYG: The Maturity Walls Are Closing In

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares 0-5 Year TIPS Bond ETF

The Fed's top economists reversed previous recession predictions. The stock market, measured by the S&P 500, is up nearly 20% since January.

Want Reliable Returns? 3 Bond ETFs for Nervous Investors

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

The iShares 0-5 Year High Yield Corporate Bond ETF invests based on the Markit iBoxx USD Liquid High Yield 0-5 Index. The PIMCO 0-5 Year High Yield Corporate Bond Index ETF invests based on the ICE BofA 0-5 Year US High Yield Constrained Index.

SHYG Vs. HYS: Own The Lower Fee ETF

SPDR Bloomberg Convertible Securities ETF

iShares Floating Rate Bond ETF

An upside to rising rates is the market's reintroduction to fixed-income assets providing a decent income. As exciting as auctions and secondary market sales are, though, typical Treasuries lack the excitement of active stock trading.

3 Bond ETFs to Buy as Interest Rates Rise

It was enough for a deliberate train of rate hikes to send the high-yield markets into complete disarray, from which the primary markets have not yet recovered. While a different asset class, commercial real estate debt is the another concern, and it could take out a host of financiers in the regional banking sector too.

SHYG: You Just Risk Another Round Of High-Yield Chaos

We last covered SJNK and SHYG in an era of return free risk. Things have changed as the Federal Reserve went from complete complacency to utter panic on inflation.

SJNK And SHYG: 8% Yields With Low Duration Risk

SHYG is more of a bet on credit quality than interest rates thanks to a middling duration. The problem is to get value out of pessimistic credit ratings is tougher than to make a call on peak rates.

SHYG Is Not The Best Middle-Ground

iShares MSCI USA ESG Optimized ETF

iShares U.S. Treasury Bond ETF

iShares Core High Dividend ETF

iShares Core S&P 500 ETF

iShares Russell 2000 ETF

iShares MBS ETF

Invesco QQQ

SPDR S&P 500 ETF Trust

iShares TIPS Bond ETF

Our fund-flows week kicked off Thursday, October 20, with bond yields rising and equity markets falling for the second straight day. The Russell 2000 fell 1.24% as the 10-year Treasury yield rose 2.35%.

U.S. Weekly FundFlows Insight Report: Fixed Income And Equity Exchange-Traded Funds Report Their Fourth Straight Week Of Inflows

Interest rates have risen all year, while asset prices plummet. Bond funds provide a simple, effective way to leverage these two trends for massive dividend growth.

SHYG: Simple Bond Dividend Reinvestment Strategy For Massive Dividend Growth

The iShares 0-5 Year High Yield Corporate Bond ETF SHYG only invests in bonds maturing within 5 years and has a WAM of 3 years. The iShares iBoxx $ High Yield Corporate Bond ETF HYG invests across the 1-15 year maturity spectrum and has a WAM of 5.5 years.

SHYG Vs. HYG: Stay Short Unless You Believe Rates Have Peaked

iShares Short Treasury Bond ETF

Xtrackers USD High Yield Corporate Bond ETF

To celebrate the 20th anniversary of the first bond ETFs, investors flocked to the asset class, pouring in $28 billion in July, double the amount that flowed into equity ETFs during a strong month for the U.S. stock market. Demand was widespread, with 46 products gathering at least $100 million last month.

High Yield Bond ETFs Return to Favor as Expected

Invesco Global Short Term High Yield Bond ETF

Exchange-traded funds are available for investors worried about increased rates.

News for iShares 0-5 Year High Yield Corporate Bond ETF ETF (SHYG)