HYS: The Junkiest Of Junk Bond ETFs

David Sommer Jr
520 Followers

Summary

  • PIMCO 0-5 Year High Yield Corporate Bond Index ETF offers exposure to short-term high-yield corporate bonds, with a 30-day SEC yield of about 7.7%.
  • HYS is considered extremely risky due to its holdings in junk bonds and over 22% of not rated bonds.
  • The ETF is not well-positioned to ride out a potential recession due to its high risk and short-term focus.

Document with title junk bond on a table. Selective focus.

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PIMCO 0-5 Year High Yield Corporate Bond Index ETF (NYSEARCA:HYS) offers exposure to high-yield corporate bonds, also known as junk bonds or non-investment grade bonds. What makes HYS unique is that this ETF holds short-term high-yield corporate bonds, while most

This article was written by

520 Followers
David Sommer Jr. has been an analyst on Seeking Alpha since 2023. He has had a passion for investments ever since he purchased his first stock when he was only 15. He mainly covers ETFs in the Fixed Income sector as well as other under-covered ETFs.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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