HYG: Is It Still The Best High-Yield Option?

  • The iShares iBoxx High Yield Corporate Bond ETF offers strong diversification, low equity correlation, and a 2.89-year duration, limiting interest rate sensitivity. Spreads are currently compressed, with no signs of excessive risk-taking or clear asymmetric recovery opportunities in the credit market. Liquidity and high-yield spreads historically signal stress; current indicators do not suggest an imminent buying opportunity for HYG.