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The U.S. fixed income market experienced a resurgence in investor attention last week, reaching levels not seen since early January, as tracked by VettaFi's Investor Behavior Intelligence (IBI) platform. The sector has seen moderate performance in 2026, driven by resilient economic conditions and elevated yields entering the year.
If you hold SPDR Bloomberg High Yield Bond ETF (NYSEARCA:JNK) for the yield, the fund's marketing rarely mentions what you actually surrender to collect it.
iShares Broad USD High Yield Corporate Bond ETF (NYSEARCA:USHY) is one of the cheapest ways to access a junk-bond income stream, paying monthly distributions with a trailing yield close to 6.9% at recent prices.
The iShares Broad USD High Yield Corporate Bond ETF (NYSEARCA:USHY) has quietly become the cheapest mainstream way to own US high-yield credit, with a net expense ratio of just 0.08% as of the latest fact sheet.
Hunter Hayes of Intrepid Capital described an “incredibly healthy” market for high-yield bonds and a conservative approach to investing in the space.
The iShares Broad USD High Yield Corporate Bond ETF boasts $26.7B AUM and headline yields above 7%, but deeper analysis reveals lower effective yields. USHY's portfolio is dominated by BB and B-rated bonds, with a median yield to maturity of 6.54%, notably below the weighted average YTM. Over 63% of USHY's holdings yield less than 7%; high-yield outliers (>10% YTM) represent only 6.61% of the portfolio by weight.
Money market funds and Treasury bills yield around 3.7% on the 3-month. The Janus Henderson AAA CLO ETF (NYSEARCA:JAAA) advertises a distribution yield of 5.51%. That spread, the three-letter AAA rating, and a trusted brand have pulled about $27 billion into JAAA. It is one of the largest active fixed income ETFs in existence. But... JAAA Markets Itself as the Safest CLO ETF, But the AAA Label Hides a Tail Risk Most Buyers Never See
Kevin Warsh was sworn in as Federal Reserve Chairman this week, and the most striking thing about his arrival is how little Wall Street seems to care.