iShares $ High Yield Corp Bond UCITS ETF

What this fund is

iShares $ High Yield Corp Bond UCITS ETF is an exchange-traded fund (ETF) from iShares, traded under the ticker IHYU (ISIN IE00B4PY7Y77). In a single purchase you get a diversified basket of holdings rather than a stake in just one business. In plain terms it is about lending to governments and companies in return for regular interest, which tends to be steadier than shares but grows more slowly, spread across its target market. Its largest holdings include BLK ICS USD LEAF AGENCY DIST, CCO HOLDINGS LLC and CVS HEALTH CORP NC5.25. It holds around 1346 positions (the ten largest ≈ 7.3%), spreading risk so no single holding decides your outcome.

By geography it is weighted towards ~88.2% United States, ~4.2% Canada and ~1.6% United Kingdom. By industry it concentrates most in ~16.7% Consumer Discretionary and ~15.5% Communication Services. Funds like this are often used as the steadier, lower-swing part of a portfolio — the ballast that cushions the ups and downs of shares. Its ongoing charge (TER) is 0.5% a year — about €50 a year on a €10,000 holding, taken automatically from the fund. It is a distributing share class — dividends are paid to you as cash rather than reinvested, and over the last year it paid out roughly 6.23% (its trailing yield).

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in USD. Its price has swung about 7.5% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2011. Like any investment, it can lose value as well as gain, and what it did before does not predict what it will do next. (Fund data sourced from iShares.)