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This iShares ETF is one of the most popular high-yield bond ETFs and aims to track the investment performance of an index made up of U.S. high-yield corporate bonds. The fund held about 1,200 ...
The fund is extremely well diversified, with over 16,000 individual positions, and it holds more than just investment-grade bonds, offering exposure to the high-yield market as well.
The fund comes with no investment minimums and a low cost, making it a solid pick as a core bond holding in a diversified portfolio. 5-year annualized return: 0.2 percent Yield: 3.1 percent
Investment companies allow individual investors the ability to participate in the bond markets through bond funds, closed-end funds and unit-investment trusts. In 2006 total bond fund net inflows increased 97% from $30.8 billion in 2005 to $60.8 billion in 2006. [ 8 ]
The Bloomberg US Aggregate Bond Index is a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds, and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues.
The fund holds government bonds, high-quality corporate bonds and investment grade international dollar-denominated bonds. SEC yield: 4.83 percent Expense ratio: 0.04 percent
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