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

Alternate Symbol(s): IUYBF

The investment objective of the Fund is to provide income by replicating, to the extent possible, the performance of an index which is a diversified representation of the US dollar denominated high yield corporate bond market, net of expenses. To achieve its investment objective the Fund uses an indexing strategy. Under this strategy, the Fund seeks to replicate the performance of the Index, net of expenses, by employing, directly or indirectly, through investment in one or more iShares ETFs and/or through the use of derivatives, a replicating strategy or sampling strategy. A replicating strategy is an investment strategy intended to replicate the performance of the Index by investing, directly or indirectly, primarily in a portfolio of index securities in substantially the same proportions as they are represented in the Index.

TSX:XHY - Post by User

iShares US High Yield Bd Idx ETF (CAD-Hedged) > yield

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Comment by Baysarjon Jun 12, 2014 3:18pm

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Post# 22654843

RE:RE:RE: yield

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 nowhere to go but up.

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