Capital Group High Yield Bond ETF

Frequently Asked Questions About CGHY

What does CGHY invest in?

The primary objective of this fund is to deliver a substantial level of current income, with capital appreciation serving as a secondary goal. Its core strategy involves dedicating a minimum of 80% of its total assets to higher-yielding, typically lower-rated debt instruments. This encompasses bonds and other debt securities rated Ba1/BB+ or below, as well as unrated obligations deemed equivalent in quality by the fund's investment adviser, including corporate loans. Additionally, the fund may allocate a portion of its investments to securities linked to economies outside the U.S., including developing nations. It maintains flexibility to invest in debt securities of any maturity or duration.

What is the expense ratio of CGHY?

Capital Group High Yield Bond ETF (CGHY) charges an expense ratio of 0.39%. This is the annual fee deducted from fund assets to cover management and operations.

What is CGHY's distribution yield?

CGHY's trailing-twelve-month yield is 5.48%, calculated from the sum of distributions over the past year divided by the current price.

How does CGHY's covered-call strategy work?

CGHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of CGHY?

Effective duration measures CGHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. CGHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of CGHY?

CGHY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.