iShares Global High Yield Corp Bond GBP Hedged UCITS ETF (Dist)

Issuer: iShares

Asset Class: Fixed Income

TER: 55bps

Trading Currency: GBP

Pays Income: False

Listing Date: 26 Jun 2013

Ticker: GHYS

ISIN: IE00B8KQFS66

This fund offers targeted exposure to the global high-yield corporate bond market, designed for investors seeking higher income potential than is typically available from investment-grade debt. The strategy focuses on bonds issued by corporations in developed markets that have lower credit ratings, often referred to as 'sub-investment-grade' or 'junk' bonds. To compensate for the higher associated credit and default risk, these securities generally offer more attractive yields. The portfolio is diversified across numerous issuers, industries, and countries, which helps to mitigate the specific risk tied to any single company or region, providing a broad representation of the global high-yield landscape.

A key feature of this particular share class is its currency-hedging strategy. While the underlying bonds are denominated in various global currencies, the fund aims to neutralize the effects of foreign exchange rate fluctuations against the British Pound. This is particularly beneficial for UK-based investors, as it isolates the investment's performance primarily to the credit and interest rate dynamics of the bond market itself, rather than unpredictable currency movements. This product is suitable for those with a higher risk tolerance looking to enhance the yield component of their portfolio, who understand the risks associated with sub-investment-grade debt but wish to avoid currency risk.