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Is WisdomTree U.S. High Yield Corporate Bond ETF (QHY) a Strong ETF Right Now?
WTWisdomTree(WT) ZACKS·2024-10-18 11:21

Core Viewpoint - The WisdomTree U.S. High Yield Corporate Bond ETF (QHY) offers investors exposure to the high-yield corporate bond market, aiming to match the performance of the WisdomTree U.S. High Yield Corporate Bond Index, which focuses on issuers with attractive fundamental and income characteristics [1][3]. Fund Overview - QHY was launched on April 27, 2016, and has accumulated over 220.56millioninassets,categorizingitasanaverage−sizedETFinthehigh−yieldbondspace[1][3].−ThefundismanagedbyWisdomTreeandseekstoreplicatetheperformanceofarule−basedalternativelyweightedindex[3].CostStructure−TheannualoperatingexpensesforQHYare0.38220.56 million in assets, categorizing it as an average-sized ETF in the high-yield bond space [1][3]. - The fund is managed by WisdomTree and seeks to replicate the performance of a rule-based alternatively weighted index [3]. Cost Structure - The annual operating expenses for QHY are 0.38%, which is competitive within its peer group [4]. - The fund's 12-month trailing dividend yield is reported at 6.26% [4]. Holdings and Sector Exposure - The fund's top holdings include ViacomCBS Inc (4.95% due 1/15/2031) and Organon Finance 1 LLC (5.125% due 4/30/2031), with the top 10 holdings accounting for approximately 8.14% of total assets [5]. - The fund has a diversified portfolio with about 479 holdings, which helps mitigate company-specific risk [6][7]. Performance Metrics - As of October 18, 2024, QHY has increased by approximately 3.97% year-to-date and has remained flat over the past year [6]. - The ETF has traded within a range of 44.85 to 46.48overthepast52weeks[6].AlternativesintheMarket−OtherETFsinthehigh−yieldbondspaceincludeiSharesiBoxx46.48 over the past 52 weeks [6]. Alternatives in the Market - Other ETFs in the high-yield bond space include iShares iBoxx High Yield Corporate Bond ETF (HYG) and iShares Broad USD High Yield Corporate Bond ETF (USHY), with assets of 14.46billionand14.46 billion and 19.95 billion respectively [7]. - HYG has an expense ratio of 0.49%, while USHY charges 0.08%, indicating potential alternatives for cost-conscious investors [7].