SHYG Vs. HYS: Own The Lower-Fee ETF

Retired Investor
Investing Group

Summary

  • The iShares 0-5 Year High Yield Corporate Bond ETF invests based on the Markit iBoxx USD Liquid High Yield 0-5 Index.
  • The PIMCO 0-5 Year High Yield Corporate Bond Index ETF invests based on the ICE BofA 0-5 Year US High Yield Constrained Index.
  • This article will review both ETFs, their respective index, and then compare the ETFs based on fixed income factors, return, and risk.
  • Between these two short-term HY ETFs with similar results, I give SHYG the Buy rating due to its much lower fee structure. Why pay more for the same results?
  • Looking for more investing ideas like this one? Get them exclusively at Hoya Capital Income Builder. Learn More »

High yield bonds. Text and colored pieces of chalk on a dark board

tumsasedgars

(This article was co-produced with Hoya Capital Real Estate)

Introduction

A logical opening question with 1-5 Year CDs yielding around 5%, why risk owning a High-Yield, or any bond ETF, when their current yields are only 70-100bps higher? These quotes taken from a

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This article was written by

Retired Investor
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Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts.

He is a contributing author to the investing group iREIT®+HOYA Capital

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