HYS

📎 Investment Objective

The PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS) seeks to provide investment results that correspond generally to the price and yield performance of the ICE BofA 0-5 Year US High Yield Constrained Index.

✨ Key Features

• Focuses on short-duration high-yield corporate bonds for lower interest rate risk
• Provides exposure to the high-yield corporate bond market through a passively managed index fund
• Low expense ratio of 0.00% makes it a cost-effective option for investors

⚠️ Primary Risks

• Credit risk: Investments in high-yield bonds carry a higher risk of default or downgrade compared to investment-grade bonds
• Interest rate risk: Short-duration bonds are less sensitive to interest rate changes, but some risk remains
• Liquidity risk: High-yield bonds may have lower liquidity compared to investment-grade bonds
• Concentration risk: The fund's focus on a specific sector (high-yield corporate bonds) makes it more vulnerable to events affecting that sector

👤 Best For

This ETF may be suitable for investors seeking exposure to the high-yield corporate bond market with lower interest rate sensitivity. It may be appropriate as a component of a diversified fixed-income portfolio, particularly for investors with a higher risk tolerance and a medium-term investment horizon.