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




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


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