USHY: Secular Market Trends Could Drive High Yields Further

Michael Del Monte
5.8K Followers

Summary

  • iShares Broad USD High Yield Corporate Bond ETF offers broad exposure to US high-yield bonds with a low 0.08% expense ratio and 6.72% yield.
  • USHY is diversified across nearly 2,000 holdings, focuses on BB/B-rated bonds, and benefits from low duration risk and strong liquidity.
  • Favorable Fed rate cut outlook and robust market fundamentals support high-yield corporates, positioning USHY for continued outperformance versus peers.
  • Recommend USHY as a Buy for diversified portfolios, citing historical outperformance relative to peer strategies, low fees, and strong market depth despite inherent high-yield risks.

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The iShares Broad USD High Yield Corporate Bond ETF (BATS:USHY) is an indexed exchange-traded fund [ETF] designed to provide investors with broad exposure to high-yield, US dollar-denominated corporate bonds. The strategy has a low expense ratio of 8bps

This article was written by

5.8K Followers
Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STX either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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About USHY ETF

SymbolLast Price% Chg
USHY
37.19-0.53%
Post37.17-0.05%
Chart
Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 2025-09-10 09:30:00 to 2025-10-10 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 37.18 to 37.86.
End of interactive chart.
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)

More on USHY

Related Stocks

SymbolLast Price% Chg
USHY
37.19-0.53%
Post:37.17-0.05%
Chart
Chart with 200 data points.
The chart has 1 X axis displaying Time. Data ranges from 2025-10-06 09:30:00 to 2025-10-10 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 37.18 to 37.625.
End of interactive chart.
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Reference ID: 1d7ef250-a74b-11f0-a55f-0fc8661e3656