From Seekingalpha · Juan de la Hoz · · 40s
HYS ETF: High Yield Risk
HYS ETF's high yield masks significant risks for investors.
In brief
HYS ETF's high yield masks significant risks for investors. HYS ETF offers 7.6% yield but has high expense ratio and credit spread risks. Originally reported by Seekingalpha.
HYS ETF Overview
HYS is a PIMCO 0-5 Year High Yield Corporate Bond Index ETF with 7.6% distribution yield.
Credit Spread Risks
Widening credit spreads increase HYS's vulnerability during market volatility.
High Expense Ratio
HYS charges 0.56% expense ratio, making it expensive for investors.
Investment Recommendation
HYS is not recommended due to high costs and credit spread risks.
The short version
HYS ETF offers 7.6% yield but has high expense ratio and credit spread risks.
