Why High Yield?

One of the highest-yielding sectors in the fixed income universe are high yield bonds and they therefore offer attractive potential for income generation as part of a diversified portfolio. What’s more, high yield historically outperformed other fixed income assets in periods of rising interest rates.

 

Corporate fundamentals have been supportive of high yield as solid earnings have allowed companies to reduce borrowing levels and maintain comfortable levels of interest coverage. The low interest rate environment has enabled many to refinance their debt at very low borrowing costs and with long payment horizons.

 

Reasons to consider High Yield

 

1BlackRock 26/05/16: Avg YTM 5.82% As measured by the Markit iBoxx Global Developed High Yield Capped Index.
2BlackRock / BAML 26/05/16 As measured by LTM defaults in BAML US HY Constrained Index as at Dec 31 2015
3BlackRock 30/06/15: High yield (as represented by Barclays Capital US High Yield Index), has outperformed Treasuries (as represented by Barclays Capital US Treasury Index) and Bank Loans (as represented by “S&P Leveraged Loan Index)
(LTM) default rate in the US high yield market, as measured by the BofA Merrill Lynch US High Yield Constrained Index, was 1.82% at the end of December 2015


Fund Name

iShares Global High Yield Bond ETF (AUD Hedged)

Index Name: Markit iBoxx Global Developed Markets Liquid High Yield Capped (AUD Hedged) Index

Management Fee

0.56%

Ticker

IHHY








What: The fund aims to provide investors with the performance of the Index, which seeks to provide Australian dollar hedged exposure to liquid, global developed, high yield corporate bonds.

How: The Index measures the performance of fixed rate, high yield corporate bonds across global developed markets.

Why: In anticipation of capital appreciation and the potential of a regular income .


Why iShares

Why iShares?

  • Trusted ETF Leader

  • Sustained record of performance

  • Powered by BlackRock


Resources

iShares Product List

iShares Product List

 

DOWNLOAD

Watch: Investing for Income with iShares ETFs


Building Better Portfolios with iShares ETFs

Learn about ETFs

This website has been developed by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230 523 (BIMAL).

 

This website provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. Any potential investor should consider the latest disclosure document or PDS in deciding whether to acquire, or to continue to hold, an investment in any BlackRock fund. This website is not a securities recommendation nor is it an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction.

BIMAL is the Responsible Entity and issuer of the Australian domiciled managed investment scheme iShares funds quoted on ASX.

BIMAL is the local agent and intermediary for iShares funds issued by iShares, Inc. ARBN 125632 279 formed in Maryland, USA; iShares Trust ARBN 125 632 411 organised in Delaware, USA. The liability of shareholders is limited). BlackRock Fund Advisors (“BFA”) serves as an advisor to the iShares funds that are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A (“BTC”). BTC is a wholly-owned subsidiary of BlackRock, Trades on ASX in the shares of an international iShares fund are settled using CHESS Depositary Interests (or “CDIs").

 

An iShares fund is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular iShares fund seeks to track. No index provider makes any representation regarding the advisability of investing in the iShares funds.  Further information on the index providers can be found here.

 

BIMAL, its officers, employees and agents believe that the information in this website and the sources on which the information is based (which may be sourced from third parties) are correct as at the date of publication. While every care has been taken in the preparation of this website, no warranty of accuracy or reliability is given and no responsibility for this information is accepted by BIMAL, its officers, employees or agents. Except where contrary to law, BIMAL excludes all liability for this information.

 

Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions on this website are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out on this website. BIMAL does not guarantee the repayment of capital or the performance of any product or rate of return referred to in this website. Past performance is not a reliable indicator of future performance.

 

No part of this website may be reproduced or distributed in any manner without the prior written permission of BIMAL.

 

© 2015 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylised i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.