USHY

The iShares Broad USD High Yield Corporate Bond ETF (USHY) is an exchange-traded fund designed to track the performance of U.S. dollar-denominated high-yield corporate bonds. The ETF is managed by BlackRock through its iShares division and trades under the ticker USHY on the Cboe BZX Exchange.

Classified as a high-yield corporate bond ETF, the fund seeks to reflect, before fees and expenses, the performance of the ICE BofA US High Yield Constrained Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes U.S. dollar-denominated corporate bonds issued by companies with below-investment-grade credit ratings across multiple sectors of the American economy.

Diversification and sector exposure

USHY provides exposure primarily associated with:

• High-yield corporate bonds.
• U.S. corporate credit.
• Below-investment-grade issuers.
• Energy.
• Industrials.
• Telecommunications.
• Consumer discretionary.
• Higher-risk fixed-income markets.

The ETF’s performance is particularly sensitive to U.S. economic conditions, credit spreads, and expectations surrounding corporate default risk.

Changes in Federal Reserve monetary policy, fluctuations in financial-market liquidity, and shifts in global risk appetite may directly affect the fund’s behavior. The ETF may also reflect developments associated with energy markets and corporate financing conditions in the United States.

Structure and costs

USHY shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. USHY may distribute income derived from interest payments generated by the corporate bonds held in the portfolio.

Because the ETF maintains exposure to high-yield bonds, its behavior may exhibit greater sensitivity to credit conditions and higher volatility compared to ETFs focused on investment-grade bonds or U.S. Treasuries.

History and evolution of the ETF

The iShares Broad USD High Yield Corporate Bond ETF was launched in 2017 during a period marked by expanding demand for corporate-credit ETFs and broader adoption of passive instruments within the U.S. fixed-income market.

Since inception, the fund has reflected movements associated with the U.S. high-yield credit market, including changes in monetary conditions, fluctuations in credit spreads, and shifts in economic expectations.

In recent years, USHY has reflected Federal Reserve tightening periods, volatility across corporate-credit markets, fluctuations in the energy sector, and changing liquidity and financing conditions for U.S. companies.

Additional Information

iShares Broad USD High Yield Corporate Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $26.51 Billions.

Over the past 12 months, iShares Broad USD High Yield Corporate Bond ETF recorded a return of 9.30%, with its price trading between $36.44 and $37.85 during the same period.

The ETF is traded under the ticker USHY.