US high-yield corporate bonds
This fund lends to US companies with weaker credit ratings, which pay extra interest to compensate for the higher chance of trouble. You earn a fatter income but take on real risk of losses if the economy sours. It behaves a bit like a mix of bonds and stocks.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- High income payout
- Spreads risk across many issuers
- Less rate-sensitive than long Treasuries
- Can drop hard in recessions
- Higher chance of defaults
- US dollar currency risk for SGD investors
About this fund
The fund tracks the Markit iBoxx USD Liquid High Yield Capped index, holding US dollar corporate bonds rated below investment grade, often called high-yield or junk bonds. These issuers pay higher coupons because they carry greater default risk, and prices can fall sharply in downturns. It is one of the most established USD high-yield UCITS ETFs.
Available on Interactive Brokers
Low-cost access to US high-yield corporate bonds and 10,000+ funds worldwide.
Frequently asked questions
Is IHYA.L accumulating or distributing?
iShares $ High Yield Corp Bond UCITS ETF USD (Acc) (IHYA.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for IHYA.L?
IHYA.L has a total expense ratio (TER) of 0.50% per year. On a $10,000 holding that is roughly $50 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy IHYA.L on Interactive Brokers?
Yes. IHYA.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does IHYA.L invest in?
iShares $ High Yield Corp Bond UCITS ETF USD (Acc) (IHYA.L) tracks the Markit iBoxx USD Liquid High Yield Capped Index. This fund lends to US companies with weaker credit ratings, which pay extra interest to compensate for the higher chance of trouble. You buy one fund and get the whole basket in a single trade.
Is IHYA.L a UCITS ETF, and where is it domiciled?
Yes, IHYA.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is IHYA.L?
On the TickerCompare 1 to 5 scale, IHYA.L is rated higher risk (4/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.