iShares Broad € High Yield Corporate Bond UCITS ETF GBP Hedged (Dist)
| Issuer: iShares |
| Asset Class: Fixed Income |
| TER: 55bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 28 May 2025 |
| Ticker: EH1G |
| ISIN: IE0005H5G7N0 |
This fund is designed to provide investors with targeted exposure to the European high-yield corporate bond market by tracking an index composed of Euro-denominated, sub-investment grade corporate bonds. It is intended for those seeking higher income potential compared to investment-grade debt, while understanding the associated higher credit risk. The portfolio offers diversification across a broad spectrum of corporate issuers and sectors within the high-yield space. Furthermore, this specific share class incorporates a currency-hedging strategy, which aims to reduce the impact of exchange rate volatility between the fund's base currency and the currency of the share class.
The investment vehicle uses a physical replication method, meaning it purchases and holds the actual bonds that make up the underlying benchmark. The index it follows consists of fixed-rate, sub-investment grade corporate bonds, which are often referred to as speculative-grade and carry a greater risk of default than more highly-rated bonds. In return for this increased risk, these securities typically offer higher yields. The fund’s management aims to closely mirror the index's composition, characteristics, and overall performance, ensuring a transparent and systematic approach to investing in this segment of the European bond market.
Within a diversified portfolio, this fund can serve as a tactical or core holding for investors aiming to boost the overall yield of their fixed-income allocation. It offers a convenient, single-trade solution to access a broad basket of European high-yield corporate bonds, which can be difficult for individual investors to assemble on their own. As a distributing share class, it is structured to pay out the income generated from the underlying bond holdings to investors on a periodic basis, making it suitable for those focused on generating a regular income stream.
