JPMorgan BetaBuilders USD High

BBHY seeks to track a market-cap weighted index to provide exposure to high-yield, USD-denominated corporate debt securities. The fund invests in securities with maturities of at least 18 months.

JPMorgan BetaBuilders USD High Yield Corporate Bond ETF is a simple high-yield corporate bond ETF. It recently reduced its expense ratio from 0.15% to 0.07%, which piqued my interest. BBHY behaves exactly as expected from a high-yield bond ETF, without any significant advantages, disadvantages, or differences relative to peers.

BBHY: Simple High-Yield Corporate Bond ETF, Above-Average 7.0% Yield And Returns

JPMorgan Beta-Builders USD High Yield Corporate Bond ETF (BBHY) aims to replicate the ICE BofA US High Yield Index using a passive investment approach. BBHY holds over 1,400 individual securities, minimizing individual issuer risk with each issuer composing less than 0.5% of the fund. The fund's composition mirrors the high yield market: 50.5% BB names, 36% B names, and 13.5% CCC names.

BBHY: JPMorgan's Take On The High Yield Market

The market seems fearful of a recession, leading to sell-offs in junk bond ETFs like BBHY, but a quick recovery was seen this past week. Investors face a decision to invest in high-yield corporates or rotate into safer treasuries amidst economic uncertainty. Corporations holding large cash stockpiles may impact investment decisions, while default risks on high-yield corporates remain low for now.

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