What Is the HYLB ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A low-cost passive bond ETF that tracks an index of USD-denominated high-yield corporate bonds. It provides regular interest income through monthly dividends.
SubscribeWhat Is This ETF?
The fund tracks the Solactive USD High Yield Corporates Total Market Index and holds below-investment-grade, US dollar-denominated corporate bonds on a market-cap-weighted basis. By diversifying across hundreds of bonds, it reduces issuer concentration risk.
It suits bond investors who want high-yield interest income and can tolerate credit risk.
Deutsche Asset Management launched the ETF in 2016, and it is managed passively, tracking an index.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Solactive USD High Yield Corporates Total Market Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Monthly |
| Dividend Frequency | Monthly |
| Total Expense Ratio | 0.05% |
The fund holds US dollar-denominated corporate bonds rated below investment grade on a market-cap-weighted basis, and its broad number of holdings spreads out the risk of individual bonds. Interest income is paid out regularly through monthly dividends.
- Among comparable high-yield bond ETFs, its expense ratio is on the lower side
- Hundreds of bonds help reduce issuer concentration
Size and Costs
Assets under management (AUM) stand at $3.3B, and the total expense ratio is 0.05% per year.
Its cost burden is lower than that of similar high-yield bond ETFs such as HYG and SPHY, and the gap in cumulative costs can add up over a long holding period.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe high-yield bond market reacts sensitively to the interest rate environment and changes in credit spreads. When rates stabilize or expectations of cuts rise, price gains and interest income work together. Conversely, when rates surge or recession fears grow, spreads tend to widen and put downward pressure on prices.
High-yield bond ETFs tend to see rising inflows during economic expansions, while a stronger aversion to credit risk shifts money toward investment-grade bonds or Treasuries. Their movements are tied to overall demand in the bond market.
Strengths and Weaknesses
Low costs and broad diversification are its strengths, while credit risk and interest rate sensitivity are the main risks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
HYG, shown in the table, is a comparable high-yield bond ETF managed by iShares with high liquidity, and SPHY is a similar product managed by State Street (SSGA). USHY is an iShares ETF that tracks a broader high-yield bond market, while LQD and USIG are investment-grade corporate bond ETFs that serve as comparisons for those who want to reduce credit risk. In addition, JNK, which tracks the same high-yield market, is also worth a look in terms of liquidity.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | $104.53 | -0.1% | $33.0B | 0.14% | 4.83% | -5.8% |
 USHY | iShares Broad USD High Yield Corporate Bond ETF | $35.67 | +0.0% | $27.5B | 0.08% | 7.12% | -4.4% |
 USIG | iShares Broad USD Investment Grade Corporate Bond ETF | $49.59 | -0.0% | $18.1B | 0.04% | 4.92% | -4.6% |
 HYG | iShares iBoxx USD High Yield Corporate Bond ETF | $77.23 | -0.1% | $18.0B | 0.49% | 6.08% | -3.8% |
 SPHY | State Street SPDR Portfolio High Yield Bond ETF | $22.53 | +0.0% | $11.9B | 0.05% | 7.4% | -4.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BHC | Bausch Health Companies Inc | 0.02% | $8.18 | +2.8% | $3.1B | - | - |
 SATS | Strive Inc - 15% PRF PERPETUAL USD 100 - Ser A SATS Stock | 0.02% | $94.27 | +0.6% | $2.6B | - | - |
 NXST | Nexstar Media Group Inc | 0.01% | $190.02 | +1.1% | $5.9B | 17.3 | 3.89% |
| VG | Venture Global Inc | 0.01% | $11.53 | +0.1% | $28.8B | 8.8 | 0.89% |
Investor Checkpoints
Before investing in HYLB, you should review credit risk and the interest rate environment. Given the nature of high-yield bonds, volatility tied to the economic cycle is large, and price fluctuation risk must be considered alongside interest income.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the expense level relative to comparable ETFs | Remains low |
| 📉 Credit Rating Distribution | Check the credit rating makeup of the bonds held | Mostly high yield |
| 📊 Spread Level | Review the current high-yield spread level | Needs checking |
| 💱 Exchange Rate | Impact of dollar exchange rate changes on returns in Korean won | No currency hedge applied |
Credit risk and interest rate risk act at the same time. In a recession, wider spreads and rising default rates can combine to deepen short-term losses, and a sharp rise in rates also puts downward pressure on bond prices.
It is an option worth considering for investors who want cost-efficient high-yield bond exposure. If liquidity is the priority, HYG is the choice, and if you want to lower the cost burden, HYLB and SPHY are the ones to compare.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of November 7, 2026.
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