HYG

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an exchange-traded fund that seeks to track the performance of a broad index of U.S. dollar-denominated high yield corporate bonds issued by U.S. companies. The ETF is managed by BlackRock and trades under the ticker HYG on NYSE Arca.

Classified as a U.S. high yield corporate bond ETF, HYG aims to reflect, before fees and expenses, the aggregated performance of non-investment grade corporate bonds included in its benchmark index.

The fund follows a passive management strategy, seeking to replicate the composition and weighting of a broad high yield index in which securities are weighted by market value.

HYG’s benchmark index consists of corporate bonds issued by companies across various sectors that meet defined liquidity and eligibility criteria established by the index provider. The portfolio is rebalanced periodically to account for maturities, new issuances, and changes in issuer credit quality.

Diversification and sector exposure

HYG provides exposure to the U.S. high yield corporate credit market, including bonds issued by companies in sectors such as:

• Financials.

• Energy.

• Telecommunications.

• Consumer discretionary.

• Health care.

• Industrials.

Structure and costs

Shares of HYG are traded on the secondary market. Creation and redemption of shares are carried out by authorized participants, a mechanism designed to help keep the ETF’s market price aligned with its net asset value (NAV).

The fund charges a management fee and does not charge a performance fee. HYG makes periodic income distributions derived from the coupon payments of the bonds held in its portfolio.

History and evolution of the ETF

The iShares iBoxx $ High Yield Corporate Bond ETF was launched in 2007, during a period of growth in fixed-income ETFs and increasing demand for market-based access to high yield corporate credit.

Over time, HYG has been incorporated into allocation strategies focused on the U.S. high yield segment within fixed-income portfolios. Between 2020 and 2024, the ETF reflected movements in credit markets driven by monetary policy cycles, economic volatility, and changes in financial conditions.