iShares € High Yield Corp Bond UCITS ETF - USD Hedged (Acc)

Issuer: iShares

Asset Class: Fixed Income

TER: 55bps

Trading Currency: USD

Pays Income: False

Listing Date: 20 Nov 2017

Ticker: HYGU

ISIN: IE00BF3NC260

This fund offers targeted exposure to the European high-yield corporate bond market by investing in a diversified portfolio of sub-investment-grade, fixed-rate bonds. These securities are issued by corporations across various sectors and are denominated in the single European currency. The investment objective is to mirror the performance of a benchmark index composed of these higher-yielding bonds, providing a strategic tool for those looking to tap into the potential income and capital growth from this specific segment of the fixed-income landscape. The 'high-yield' classification indicates that the fund holds debt from companies with lower credit ratings, which typically offer higher interest payments to compensate for the elevated credit risk involved.

A crucial feature of this share class is its currency-hedging strategy, which is designed to minimize the impact of exchange rate volatility between the fund's underlying currency and the US dollar. This makes the investment's returns primarily dependent on the performance of the bonds themselves, rather than currency market fluctuations, making it particularly relevant for dollar-based investors. The fund is suitable for those with a higher risk tolerance who are seeking to enhance portfolio yield and achieve geographic diversification within their fixed-income allocation. It serves as a convenient, single-trade solution to access a broad basket of European corporate debt without direct currency exposure.