USHY Stock Recent News

High-yield corporate bond ETFs provide investors with strong yields, albeit somewhat elevated credit risk. There are lots of high-yield bond ETFs available to investors. Some with higher yields, some with better performance track-records, some focusing on more niche areas of the market. A quick overview of five of these follows. ETFs include simple, cheap vanilla ETFs, smart beta ETFs, and those targeting niche, best-performing bonds.

JPMorgan, already the largest manager of actively managed fixed income ETFs, expanded its capabilities with a splash today. The JPMorgan Active High Yield ETF (JPHY) began trading today with the aid of a large external institutional client and $2 billion.

More neutral on inflation risks given recent moderate CPI amid encouraging jobs data. USHY remains sensitive to overall YTM changes with 3-year duration, but the reduced evidence of stagflation reduces the inflation and credit spread pressure. Tariff risks persist, with reciprocal tariffs still not out of the picture, but we do point to moderating data such as low export exposure of the US economy.

VOO, IBIT, IXUS, IQLT and USHY emerge as the most loved ETFs of last week.

The ongoing trade war has led to a massive increase in uncertainty and bearish sentiment. Credit spreads have widened as a result, going from their lowest levels in history, to solidly above-average. Investing in high-yield corporate bond funds seems like an easy way to profit from these changes.

Bond ETFs are in demand in 2025. With less than a third of the year complete, the industry has gathered $110 billion of net inflows.

During the first week of March, fixed income ETFs gathered more money than equity products. While not rare, this is a sign of uncertainty in the markets.

My initial pessimism on USHY was too severe; deeper analysis shows a less wicked outlook for 2025 despite low spread levels. USHY holds exposure to BB and B-rated bonds, which in 2025 experienced a default rate below the historical average. Rising net leverage in IG bonds may increase fallen angels, suggesting the market is pricing in this risk rather than mispricing HY risk.

In mid-February 2025, some in the media will be excitedly discussing what stocks were bought or sold by hedge funds in Q4 2024. However, thanks to the Unlimited Hedge Fund Barometer, we can understand today that long/short equity managers were avoiding more cheaply valued small- and midcap stocks in favor of growth stocks.

iShares Broad USD High Yield Corporate Bond ETF is the largest high-yield corporate bond ETF in the market. It yields 6.6% and has performed reasonably well since inception. USHY is a solid income ETF and one without significant advantages or disadvantages to high-yield peers.