The iShares $ High Yield Corp Bond UCITS ETF (IHYA) is an Ireland-domiciled fixed-income ETF managed by BlackRock through its iShares platform. IHYA is the ticker for the fund's USD accumulating share class on the London Stock Exchange.

The fund seeks to track the iBoxx USD Liquid High Yield Capped Index, a benchmark comprising U.S. dollar-denominated high-yield corporate bonds.

IHYA provides diversified exposure to below-investment-grade corporate credit. The fund follows a passive investment strategy and uses physical replication through representative sampling, holding a selection of bonds designed to closely replicate the characteristics and performance of its benchmark.

High-yield bonds carry greater credit risk than investment-grade securities. In return for this additional risk, they typically offer higher yields, although they can also be more sensitive to changes in economic conditions, issuer credit quality, and market credit spreads.

Composition / Exposure Profile

IHYA holds U.S. dollar-denominated corporate bonds issued by companies across different sectors, including:

• Consumer sectors.

• Communications.

• Energy.

• Financials.

• Industrials.

• Health care.

• Technology.

• Utilities.

The strategy provides global high-yield exposure. Although a significant portion of issuers is associated with the United States, companies from other countries can also issue USD-denominated debt and become eligible for the benchmark when they meet its requirements.

The index methodology applies issuer caps to limit concentration, while the ETF uses sampling to track the benchmark's characteristics without necessarily holding every eligible bond.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the accumulating share class trades in USD under IHYA.

The ETF has a total expense ratio (TER) of 0.50% per year, uses physical replication through representative sampling, and is domiciled in Ireland. It operates as part of iShares II plc under the UCITS framework.

IHYA follows an accumulating income policy. Interest and other income generated by portfolio securities are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The iShares $ High Yield Corp Bond UCITS ETF USD (Acc) (IHYA) share class was launched in 2017 to provide exposure to the global market for U.S. dollar-denominated high-yield corporate bonds.

Since its launch, the share class has maintained a passive strategy linked to the iBoxx USD Liquid High Yield Capped Index, using representative sampling to track the performance of the below-investment-grade corporate credit market.

Throughout its history, IHYA's performance has reflected conditions in the U.S. dollar credit market, including changes in U.S. interest rates, corporate credit spreads, economic growth expectations, and perceived default risk.

Additional Information

iShares $ High Yield Corp Bond UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $2.07 billion.

Over the past 12 months, iShares $ High Yield Corp Bond UCITS ETF USD Acc recorded a return of 1.24%, with its price trading between $7.23 and $7.56 during the same period.

The ETF is traded under the ticker IHYA.