Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

High Yield International Bond ETF Debuts (IHY)

Tue, Apr 3, 10:15 AM ET, by Michael Johnston

Van Eck notched yet another first for the ETF industry today with the launch of a product designed to deliver exposure to high yielding bonds from international issuers. The Market Vectors International High Yield Bond ETF (IHY) will seek to replicate an index comprised of below investment grade debt from issuers in both emerging and developed markets outside the U.S. The index underlying IHY will include bonds denominated in U.S. dollars, Euros, Canadian dollars, and pound sterling.

Under The Hood

The related BofA Merrill Lynch Global ex-U.S. Issuers High Yield Constrained Index has an average yield to worst of about 8.3% with an average modified duration of about four years. About 1,000 individual securities make up the index, spread across a number of different industries and countries. Industrials bonds make up close to 75% of the underlying index, though that total includes companies engaged in a number of different industries such as automotive, energy, media, health care, and real estate. Financial issuers make up about 20% of the underlying portfolio.

Roughly 55% of the portfolio is allocated to securities denominated in the U.S. dollar; the remainder is split between the euro (38%), pound (5%), and Canadian dollar (2%). About two thirds of the underlying index is allocated to developed markets, with another third in emerging markets [see the IHY fact sheet].

Case For High Yield International Bonds

The obvious appeal of IHY is as a potential source of attractive current returns; with yields on domestic investment grade debt at record lows, many investors are looking overseas or towards lower quality debt to beef up returns. IHY combines both of those elements in a single ticker, holding below investment grade debt from international issuers.

IHY also offers a way to tap into an asset class that is often overlooked, potentially expanding the depth of investor portfolios and bringing diversification benefits as well. Most U.S.-based investors with exposure to high yield bonds focus only on debt of U.S. issuers, overlooking an increasingly large portion of the global high yield debt market in the process. International issuers now represent about 35% of global junk bonds, a percentage that has steadily climbed over the last several years.

There are about now about a dozen ETFs in the High Yield Bonds ETFdb Category, with aggregate assets of close to $30 billion. The vast majority of those assets are in U.S. dollar-denominated securities–it has historically been difficult for investors to access below investment grade debt from international issuers. The PowerShares International Corporate Bond Portfolio (PICB) and SPDR Barclays Capital International Corporate Bond ETF (IBND) offer access to international corporate bonds, but both focus primarily on higher quality corporate debt in developed markets.

International junk bonds also offer an opportunity to beef up current returns without taking on significantly more risk; international high yield debt currently offers higher yields and lower duration than U.S. bonds with similar credit ratings. Moreover, high yield bonds denominated in currencies besides the greenback bring some dollar diversification to U.S.-based investors.

“In today’s persistent low interest environment, investors continue to search the globe for new sources of income,” said Francis Rodilosso, one of the portfolio managers for IHY. “With IHY, we have created an income-oriented ETF that, by tracking its index, may offer high-yield diversification, a high level of potential income and exposure to issuers worldwide that may experience more robust economic growth than the United States.”

[For analysis and updates on all new ETFs, sign up for the free ETFdb newsletter]

Disclosure: No positions at time of writing.


SDI Glossary: "Bond" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   Bond   Bonds   Canadian   ETFdb   High   International   Yield   about   access   also   another   assets   average   beef   below   bonds   both   corporate   debt   denominated   developed   different   diversification   dollar   exposure   from   grade   high   income   index   international   investment   investors   issuers   junk   make   markets   offer   offers   portfolio   pound   quality   returns   securities   that   today   underlying   will   with   yield

| More

Becton, Dickinson Takes Over #114 Spot From CSRA
Fri, Feb 12, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

PCEF Crosses Critical Technical Indicator
Fri, Feb 12, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the PowerShares CEF Income Composite Portfolio ETF (PCEF) entered ...

GLD: Large Inflows Detected at ETF
Fri, Feb 12, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: GLD Exchange traded funds (ETFs) trade just like stocks, but ...

MDY, JAH, MTD, RE: Large Outflows Detected at ETF
Fri, Feb 12, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: MDY, JAH, MTD, RE Exchange traded funds (ETFs) trade just ...

The Math Shows IXN Can Go To $108
Fri, Feb 12, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied SPHQ Analyst Target Price: $25
Fri, Feb 12, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied FXO Analyst Target Price: $25
Fri, Feb 12, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

RHS's Underlying Holdings Imply 10% Gain Potential
Fri, Feb 12, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

iShares MSCI USA Value Factor (VLUE) Enters Oversold Territory
Thu, Feb 11, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI USA Value Factor ETF (VLUE) entered ...

DFJ Crosses Critical Technical Indicator
Thu, Feb 11, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree Japan SmallCap Dividend Fund ETF (DFJ) entered ...

Multi-Asset Diversified Income Index Fund (MDIV) Enters Oversold Territory
Thu, Feb 11, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) entered ...

EFG Crosses Critical Technical Indicator
Thu, Feb 11, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI EAFE Growth ETF (EFG) entered into ...

GWX Crowded With Sellers
Thu, Feb 11, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P International Small Cap ETF (GWX) entered ...

Mondelez International Moves Up In Analyst Rankings, Passing Red Hat
Thu, Feb 11, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

IWP Crowded With Sellers
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares Russell Mid-Cap Growth ETF (IWP) entered into ...

IJR Crosses Critical Technical Indicator
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares Core S&P Small-Cap ETF (IJR) entered into ...

PFF Crowded With Sellers
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Preferred Stock ETF (PFF) entered into ...

SPDR S&P 600 Small Cap Growth (SLYG) Enters Oversold Territory
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P 600 Small Cap Growth ETF (SLYG) ...

SPDR S&P Insurance (KIE) Enters Oversold Territory
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P Insurance ETF (KIE) entered into oversold ...

REZ Crosses Critical Technical Indicator
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares Residential Real Estate Capped ETF (REZ) entered ...

EFV Crosses Critical Technical Indicator
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI EAFE Value ETF (EFV) entered into ...

SPDR Dow Jones REIT (RWR) Enters Oversold Territory
Thu, Feb 11, 11:44 AM ET, by ETF Channel

In trading on Thursday, shares of the SPDR Dow Jones REIT ETF (RWR) entered into ...

iShares U.S. Real Estate Getting Very Oversold
Thu, Feb 11, 11:35 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Real Estate ETF (IYR) entered into ...

PowerShares Fundamental High Yield Corporate Bond Portfolio Getting Very Oversold
Thu, Feb 11, 11:35 AM ET, by ETF Channel

In trading on Thursday, shares of the PowerShares Fundamental High Yield Corporate Bond Portfolio ETF ...

Vanguard Information Technology ETF Experiences Big Outflow
Thu, Feb 11, 11:35 AM ET, by ETF Channel

Symbols mentioned in this story: VGT, TEL, GLW, HPQ Exchange traded funds (ETFs) trade just ...

Vanguard Mega Cap Growth (MGK) Enters Oversold Territory
Thu, Feb 11, 11:35 AM ET, by ETF Channel

In trading on Thursday, shares of the Vanguard Mega Cap Growth ETF (MGK) entered into ...

The Math Shows IJJ Can Go To $130
Thu, Feb 11, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Add Up The Parts: IYR Could Be Worth $83
Thu, Feb 11, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

How The Pieces Add Up: HDV Targets $81
Thu, Feb 11, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied IWO Analyst Target Price: $170
Thu, Feb 11, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

IWN's Underlying Holdings Could Mean 27% Gain Potential
Thu, Feb 11, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Shares of IPAC Now Oversold
Wed, Feb 10, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Core MSCI Pacific ETF (IPAC) entered into ...

Shares of HEWJ Now Oversold
Wed, Feb 10, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Currency Hedged MSCI Japan ETF (HEWJ) entered ...

Shares of EWJ Now Oversold
Wed, Feb 10, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Japan ETF (EWJ) entered into oversold ...

BLV: ETF Inflow Alert
Wed, Feb 10, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: BLV Exchange traded funds (ETFs) trade just like stocks, but ...

DIA, GS, BA, UNH: Large Inflows Detected at ETF
Wed, Feb 10, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: DIA, GS, BA, UNH Exchange traded funds (ETFs) trade just ...

IWD, AIG, MDLZ, WBA: Large Outflows Detected at ETF
Wed, Feb 10, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWD, AIG, MDLZ, WBA Exchange traded funds (ETFs) trade just ...

QID: ETF Inflow Alert
Wed, Feb 10, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: QID Exchange traded funds (ETFs) trade just like stocks, but ...

SCPB: ETF Outflow Alert
Wed, Feb 10, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SCPB Exchange traded funds (ETFs) trade just like stocks, but ...

SPLV, PSA, XL, CB: Large Inflows Detected at ETF
Wed, Feb 10, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SPLV, PSA, XL, CB Exchange traded funds (ETFs) trade just ...

VTI: Large Inflows Detected at ETF
Wed, Feb 10, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VTI Exchange traded funds (ETFs) trade just like stocks, but ...

FDM's Holdings Imply 24% Gain Potential
Wed, Feb 10, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

We Did The Math FTY Can Go To $51
Wed, Feb 10, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Add Up The Pieces: BIZD Could Be Worth $19
Wed, Feb 10, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Analysts See 32% Gains Ahead For EMIF
Wed, Feb 10, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

YCS Crowded With Sellers
Tue, Feb 9, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the ProShares UltraShort Yen ETF (YCS) entered into oversold ...

RXI Crowded With Sellers
Tue, Feb 9, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Global Consumer Discretionary ETF (RXI) entered into ...

See How United Technologies Ranks Among Analysts' Top Dow 30 Picks
Tue, Feb 9, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that United Technologies Corp (UTX) ...

VFC Achieves #71 Analyst Rank, Surpassing Laboratory Corporation of America Holdings
Tue, Feb 9, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

FXG, STZ, HRL, DPS: ETF Outflow Alert
Tue, Feb 9, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: FXG, STZ, HRL, DPS Exchange traded funds (ETFs) trade just ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

High Yield International Bond ETF Debuts (IHY) | Self Directed Investor | Copyright © 2008 - 2016, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.