iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG): A Look at Its 7.41% SEC Yield and Junk-Bond Exposure

Sonal Goyal

27 October 2026 05:28 PM AEDT

iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG): A Look at Its 7.41% SEC Yield and Junk-Bond Exposure

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Key Highlights

iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) had net assets of about $17.04 billion and a NAV of $77.05 as of Oct 26, 2026.
The fund tracks the iBoxx USD Liquid High Yield Index with an expense ratio of 0.49%.
Its 30-day SEC yield was 7.41%, with monthly distributions.

The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) provides exposure to U.S. dollar-denominated corporate bonds rated below investment grade. As of Oct 26, 2026, it held net assets of about $17.04 billion across 1,336 holdings, with a NAV of $77.05 per share.

Index and Investment Approach

The fund tracks the iBoxx USD Liquid High Yield Index and has traded on NYSE Arca since Apr 4, 2007. It carries a 0.49% expense ratio, the highest among the fixed income index funds in this group, which reflects the cost of managing a broad portfolio of lower-rated credit.

Portfolio Composition

The portfolio is spread across more than 1,300 issues. The largest line was a BlackRock cash fund at 0.87%, followed by 1261229 BC Ltd 144A (0.57%), Meridian Arc Holdco LLC 144A (0.44%), EchoStar Corp (0.41%) and Quikrete Holdings 144A (0.35%), so no single credit makes up a large share of assets.

Non-Investment-Grade Credit

The fund prospectus notes that non-investment-grade debt securities may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. The portfolio reported an option adjusted spread of 297.72 bps and a negative convexity reading of -0.09 as of Oct 23, 2026.

Yield and Distributions

The fund reported a 30-day SEC yield of 7.41% as of Oct 23, 2026 and a 12-month trailing yield of 6.12%. Distributions are paid monthly. The most recent distribution was $0.341639 per share, with an ex-date of Oct 1, 2026 and payment on Oct 6, 2026. iShares notes that distribution yield and trailing yield can vary from period to period for reasons such as tax treatment and changes in fund shares outstanding.

Portfolio Characteristics

As of Oct 23, 2026 the portfolio held 1,336 securities. Weighted average coupon was 6.66, weighted average maturity 4.16 years, effective duration 3.18 years and average yield to maturity 8.00%, with an option adjusted spread of 297.72 bps and convexity of -0.09.

Concentration and Holdings Profile

1,336 securities were held as of Oct 23, 2026. The five largest positions listed on the fund page totalled about 2.64% of assets, leaving roughly 97.36% across the remaining holdings. That is a low level of concentration, with exposure spread thinly across many issuers. iShares notes that holdings are subject to change and that the weights shown are calculated from vendor prices, which may differ from the fund’s own valuation prices.

Fund Details at a Glance

The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) is an index-based fixed income fund that began trading on Apr 4, 2007. Its benchmark is the iBoxx USD Liquid High Yield Index, and it pays distributions monthly. As of Oct 26, 2026 it had 221.1 million shares outstanding and net assets of $17,036,625,341. An annual fee of 0.49% works out to $49 for every $10,000 held, before any brokerage commissions.

Risk Disclosures Noted by iShares

Fixed income risks include interest-rate and credit risk: when interest rates rise, the value of debt securities typically declines, and credit risk is the possibility that an issuer cannot make principal and interest payments. Non-investment-grade debt securities may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. Shares of ETFs are bought and sold at market price rather than NAV and are not individually redeemed from the fund, and brokerage commissions will reduce returns. Investing involves risk, including possible loss of principal.

Costs and Trading Details

The expense ratio is 0.49%. The fund is listed on NYSE Arca with 221.1 million shares outstanding and net assets of $17,036,625,341 as of Oct 26, 2026. The closing price was $77.20 as of Oct 26, 2026, against a NAV of $77.05 on Oct 26, and the premium/discount was 0.19. The 30-day median bid/ask spread was 0.01% and 30-day average volume was 64,167,098 shares.

Closing View

iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) reported net assets of about $17.04 billion and 1,336 holdings, with its index, fees and distribution schedule as set out above. The monthly distribution schedule, 0.49% expense ratio and 0.01% median bid/ask spread are the main cost and income details reported for the fund.

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