Deutsche Asset Management, begun trading a new High Yield Corporate Bond ETF, the Deutsche X-trackers USD High Yield Corporate Bond ETF (Nyse Arca: HYLB), on Wednesday, December 07, 2016. Here is a synopsis of the new ETF:
|Symbol: HYLB||Exchange: NYSE ARCA|
|Name: Deutsche X-trackers USD High Yield Corporate Bond ETF||Net Expense Ratio: 0.25%|
The Deutsche X-trackers USD High Yield Corporate Bond ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Index.
The Solactive USD High Yield Corporates Total Market Index includes high yield bond positions designed to represent a more liquid selection of bonds than the universe of high yield bonds in the United States not included in the Underlying Index.
Currently, the bonds eligible for inclusion in the Underlying Index include U.S. dollar-denominated high yield corporate bonds that:
(i) are issued by companies domiciled in countries classified as developed markets by the index provider;
(ii) rated as sub-investment-grade by at least one of these 2 rating agencies: Moody’s Investors Services (Moody’s) and Standard & Poor’s Ratings Services, when available;
(iii) are from issuers with at least $1 billion outstanding face value;
(iv) have at least $400 million of outstanding face value;
(v) have an original maturity date at most 15 years; and
(vi) have at least 1 year to maturity.
In addition, the Underlying Index may include a substantial number of bonds offered pursuant to Rule 144A under the Securities Act of 1933, as amended (1933 Act). The Underlying Index is reconstituted and rebalanced on a monthly basis.
As of September 30, 2016, the Underlying Index was comprised of 1,161 bonds issued by 435 different issuers in the following countries: Australia, Belgium, Bermuda, British Virgin Islands, Canada, Cayman Islands, Finland, France, Germany, Ireland, Italy, Japan, Jersey Channel Islands, Liberia, Luxembourg, Marshall Islands, Netherlands, Norway, Singapore, Sweden, the United Kingdom and the United States.
The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in high yield corporate bonds. As of September 30, 2016, the Underlying Index was substantially comprised of issuers from the United States (78.9%).
Fund Top Holdings (12/14/16):
|HCA INC||0.97 %|
|CHS/COMMUNITY HEALTH SYSTEMS I||0.85 %|
|NUMERICABLE GROUP SA||0.76 %|
|EP ENER/EVEREST ACQ FIN||0.67 %|
|AMERICAN AIRLINES GROUP||0.65 %|
|MGM RESORTS INTL||0.59 %|
|SPRINT CORP||0.59 %|
|DISH DBS CORP||0.59 %|
|SPRINT COMMUNICATIONS||0.58 %|
|VALEANT PHARMACEUTICALS||0.58 %|
HYLB Home Page
Here is a comment from Fiona Bassett, Head of Passive Asset Management, Americas:
“For investors seeking pure high-yield beta exposure as part of their diversification strategy in their overall asset allocation, they can now do so in a fast and cost-effective way through the Deutsche X-trackers USD High Yield Corporate Bond ETF. In the current low interest rate environment, high-yield bonds provide investors with a potential source of income. In addition, as the market is anticipating an interest-rate hike by the US Federal Reserve Board, the high-yield market tends to be less impacted by rate moves, shielding investors from potential volatility.”