iShares US High Yield Bd Idx ETF (CAD-Hedged) T.XHY

yield

[studduck]

going forward will the yield be affected even if the price of bonds and the fund go down? thanks for your comments!

[habsfank]

The fund is comprised of short term corporate bonds and not government.  Depending on the bond term, i think many corps will renew at a discount and errode XHY's NAV.  That said, the yield is still better than buying gov bonds and the distributions won't be slashed overnight.   Just my thoughts. 

[studduck]

So if interest rates go up won't the rates on bonds go up with them? thanks for your reply

[Baysarj]

When interest rates go up, bond values go down. New bonds issued would definitely have a higher rate since their rates are based on the "risk-free rate".    However, if you were locked into a bond, and rates went up, the value of your bond would decrease as investors would demand a higher yield.   This is why you want to be in short-term bonds when interest rates have

[PickyInvest]

Most junk bonds are short term.

[wateroperator]

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