The iShares $ Short Duration High Yield Corp Bond UCITS ETF USD (Acc) (SDHA) is an Ireland-domiciled fixed-income ETF managed by BlackRock and traded in U.S. dollars on the London Stock Exchange.

The fund seeks to track the performance of the iBoxx USD Liquid High Yield 0-5 Capped Index, a benchmark composed of short-term, U.S. dollar-denominated high-yield corporate bonds.

SDHA provides exposure to the sub-investment-grade corporate credit market. The ETF follows a passive investment strategy and uses a physical structure with sampling, investing directly in a representative selection of bonds from its benchmark. It operates under the UCITS framework and follows an accumulating income policy.

The iBoxx USD Liquid High Yield 0-5 Capped Index includes U.S. dollar-denominated high-yield corporate bonds issued by companies from developed markets. Eligible securities must meet requirements related to credit rating, issue size, liquidity, and maturity. 

At each rebalancing, bonds must have no more than five years remaining to maturity and at least six months until final maturity. The benchmark also applies a 3% cap per issuer.

Composition / Exposure Profile

SDHA holds corporate bonds issued by companies across different segments of the economy, including:

• Industrials.

• Utilities.

• Financials.

The fund focuses on U.S. dollar-denominated high-yield bonds across corporate issuers from different sectors and developed markets. Its strategy targets the sub-investment-grade segment of the corporate fixed-income market.

The benchmark's five-year maturity limit directs the portfolio toward the shorter-duration segment of the high-yield market. This generally reduces interest-rate sensitivity relative to comparable longer-maturity bonds, although the portfolio remains exposed to material credit, default, and liquidity risks.

Structure and Costs

SDHA trades in U.S. dollars on the London Stock Exchange. Both the fund's base currency and the share class currency are the U.S. dollar.

The ETF has a total expense ratio (TER) of 0.45% per year, uses a physical structure with sampling, and is domiciled in Ireland under the UCITS framework. Its issuing company is iShares IV plc, and the fund is managed by BlackRock Asset Management Ireland Limited.

SDHA is an accumulating share class, meaning interest and other income generated by its bond holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The iShares $ Short Duration High Yield Corp Bond UCITS ETF USD (Acc) (SDHA) was launched in 2018 as the accumulating share class of the iShares $ Short Duration High Yield Corp Bond UCITS ETF.

Since its launch, the share class has maintained a passive strategy linked to the iBoxx USD Liquid High Yield 0-5 Capped Index, providing exposure to U.S. dollar-denominated high-yield corporate bonds with relatively short maturities.

Throughout its history, the fund's performance has reflected factors such as corporate credit conditions, credit spreads, interest rates, and issuer creditworthiness, all of which are particularly relevant to securities rated below investment grade.

Additional Information

iShares $ Short Duration High Yield Corp Bond UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $895.60 million.

Over the past 12 months, iShares $ Short Duration High Yield Corp Bond UCITS ETF USD Acc recorded a return of 2.71%, with its price trading between $6.98 and $7.33 during the same period.

The ETF is traded under the ticker SDHA.