Six styles of high yield bond ETFs
By Karen Schenone, Head of US iShares Fixed Income Strategy at BlackRock.
Learn how iShares high yield bond ETFs can help generate income in a low rate environment.
The post Six styles of high yield bond ETFs first appeared on ETF Strategy.

By Karen Schenone, Head of US iShares Fixed Income Strategy at BlackRock.

Six styles of high yield bond ETFs
Coronavirus worries injected sudden market volatility into global financial markets and prompted the most jarring asset price swings since the great financial crisis.
In response, global central banks engaged in a variety of actions to provide stimulus to the economy to soften the impact of COVID-19, including the Federal Reserve reducing its policy interest rate to near zero to lower the cost of credit and improve liquidity for borrowers.
For savers, a low-rate environment means it is increasingly difficult to generate returns on bonds that overcome inflation. Consider that the consumer price index is 1.2% year-over-year, but the Fed funds target rate is 0-0.25%, down from 2.25-2.50% as recently as July 2019.
The BlackRock Investment Institute (BII) recently endorsed high yield bonds in 2021 for income-seeking investors. Higher-yielding bonds can help investors reach their fixed income goals, and this article walks through many of the questions I get often about how yield bond ETFs can fit into income-seeking portfolios.

Source: BlackRock.
Role of fixed income in a portfolio
For starters, there are three primary roles that bond ETFs can play in a portfolio.
- Income: Bonds can be used for income, which in today’s market can help investors add credit risk to boost yield. Corporate bonds generally pay a yield above government bonds. The extra yield premium varies based on a corporate issuer’s credit risk, time to maturity, and overall market conditions.
- Capital preservation: Bond prices tend to not fluctuate as much as stock prices and lower duration bonds can help preserve investors’ savings. If you are more concerned about return-of-capital rather than return-on-capital, then it’s best to stick to bonds with shorter maturities.
- Equity market diversification: Government bonds and investment-grade securities tend to benefit from a flight-to-quality when the stock market declines. While these bonds yield less than below investment grade bonds, they have low correlations to the stock markets and can help balance out overall portfolio returns over time.

Source: BlackRock.
Investors generally need to balance out these competing roles in the portfolio to meet goals, since no single bond or bond fund can meet all these objectives. More fixed income-heavy portfolios (less than 30% stocks) will need more income to meet return objectives, while more stock-heavy portfolios (70-80% stocks) should have higher quality bonds to diversify equities. The world of ultra-low rates means that all types of investors are increasingly reliant on income to generate total return.
Different ways to invest in high yield bond markets
The first-ever high yield bond ETF, the iShares iBoxx $ Liquid High Yield Bond ETF (HYG US), was launched in 2007 as a liquid way to track the high yield market. Ten years later, the iShares Broad USD High Yield Bond ETF (USHY US) launched to track an even broader high yield index. Today investors have a choice with 17 iShares high yield bond ETFs that are designed to create customized income portfolios.
Each of the iShares high yield bond ETFs is a bit different, and below are some of the approaches they take to help investors reach their goals:
- Income with capital preservation: iShares 0-5 Year Corporate Bond ETF (SHYG US) tracks an index tied to the shorter-maturity part of the market. Additionally, its index will remove bonds when they fall below $60, which is a widely considered metric of distress. Removing these types of bonds can potentially reduce losses during a credit cycle.
- Higher-quality high yield: iShares BB Rated Corporate Bond ETF (HYBB US) invests in the BB-rated high yield corporate bond market, those just below the “investment grade” dividing line. This ETF will not have exposure to the lower-rated bonds (B-rated and below) that are more likely to default.
- Fallen angels: iShares Fallen Angels USD Bond ETF (FALN US) offers exposure to fallen angels, bonds that are originally investment grade that get downgraded to high yield. Fallen angels tend to outperform the broad high yield market over time. These bonds also tend to get upgraded more often and have a longer duration than the new issue high yield market.
- Sustainable high yield: iShares ESG Advanced High Yield Corporate Bond ETF (HYXF US) invests in high yield bonds from issuers with higher ESG ratings, while extensively screening out controversial industries. Sustainable bond ETFs incorporate sustainability-related considerations, which can provide more insights into fixed income solutions.
- Term Maturity (iBonds): iShares iBonds ETFs are designed to mature like a bond, trade like a stock, and are diversified like a fund. The High Yield & Income iBonds, with maturities from 2021 – 2026, invest in bonds that provide high income and mature in a specific calendar year. Visit the iBonds Ladder Tool to start building a high yield bond ladder.
Summing it up
The BlackRock Investment Institute expects interest rates to stay low for the foreseeable future as the global economy rebounds from the effects of the pandemic. This market environment complicates the options for yield-seeking investors. iShares ETFs offer myriad approaches for seeking income in an easy-to-trade, on-exchange format.
(The views expressed here are those of the author and do not necessarily reflect those of ETF Strategy.)
The post Six styles of high yield bond ETFs first appeared on ETF Strategy. default pandemic coronavirus covid-19 stimulus bonds government bonds corporate bonds equities stocks fed federal reserve etf interest rates stimulus stock marketsGovernment
Family Of College Student Who Died From COVID-19 Vaccine Sues Biden Administration
Family Of College Student Who Died From COVID-19 Vaccine Sues Biden Administration
Authored by Zachary Stieber via The Epoch Times (emphasis…

Authored by Zachary Stieber via The Epoch Times (emphasis ours),
The family of a college student who died from heart inflammation caused by Pfizer’s COVID-19 vaccine has sued President Joe Biden’s administration, alleging officials engaged in “willful misconduct.”
U.S. Department of Defense (DOD) officials wrongly promoted COVID-19 vaccination by repeatedly claiming the available vaccines were “safe and effective,” relatives of George Watts Jr., the college student, said in the new lawsuit.
That promotion “duped millions of Americans, including Mr. Watts, into being DOD’s human subjects in its medical experiment, the largest in modern history,” the suit states.
The Public Readiness and Emergency Preparedness Act allows lawsuits against certain people if they have engaged in “willful misconduct” and if that misconduct caused death or serious injury.
COVID-19 vaccines are covered by the act due to a declaration entered during the Trump administration in 2020 after COVID-19 began circulating.
“DOD’s conduct and the harm caused as alleged within the four corners of the lawsuit speaks for itself,” Ray Flores, a lawyer representing the Watts family, told The Epoch Times via email. “I have no further comment other than to say: My only duty is to advocate for my client. If the DOD conveys a settlement offer, I will see that it’s considered.”
The suit was filed in U.S. court in Washington.
The Pentagon and the Department of Justice did not respond to requests for comment.
Watts Suddenly Died
Watts was a student at Corning Community College when the school mandated COVID-19 vaccination for in-person classes in 2021. He received one Pfizer dose on Aug. 27, 2021, and a second dose approximately three weeks later.
Watts soon began experiencing a range of symptoms, including tingling in the feet, pain in the heels, numbness in the hands and fingers, blood in his sperm and urine, and sinus pressure, according to family members and health records.
Watts went to the Robert Packer Hospital emergency room on Oct. 12, 2021, due to the symptoms. X-rays showed clear lungs and a normal heart outline.
Watts was sent home with suggestions to follow up with specialists but returned to the emergency room on Oct. 19, 2021, with worsening symptoms despite a week of the antibiotic Augmentin. He was diagnosed with sinusitis and bronchitis.
While speaking to his mother at home on Oct. 27, 2021, Watts suddenly collapsed. Emergency medical personnel rushed to the home but found him unresponsive. He was rushed to the same hospital in an ambulance. He was pronounced deceased at age 24.
According to a doctor at the hospital, citing hospital records and family members, Watts had no past medical history on file that would explain his sudden death, with no known history of substance abuse or obvious signs of substance abuse. His mother described her son as a “healthy young male.”
Dr. Robert Stoppacher, a pathologist who performed an autopsy on the body, said that the death was due to “COVID-19 vaccine-related myocarditis.” The death certificate listed no other causes. A COVID-19 test returned negative. Dr. Sanjay Verma, based in California, reviewed the documents in the Watts case and said that he believed the death was caused by the COVID-19 vaccination.
Pfizer did not respond to a request for comment.
Watts Took Vaccine Under Pressure
The community college mandate included a 35-day grace period following approval by the U.S. Food and Drug Administration (FDA) of a COVID-19 vaccine.
The Moderna, Pfizer, and Johnson & Johnson vaccines were given emergency use authorization early in the pandemic. The FDA approved the Pfizer shot on Aug. 23, 2021. It was the first COVID-19 vaccine approval. But doses of the approved version of the shot, branded Comirnaty, were not available for months after the approval.
Read more here...
International
US Sent Billions in Funding to China, Russia For Cat Experiments, Wuhan Lab Research: Ernst
US Sent Billions in Funding to China, Russia For Cat Experiments, Wuhan Lab Research: Ernst
Authored by Mark Tapscott via The Epoch Times…

Authored by Mark Tapscott via The Epoch Times (emphasis ours),
Hundreds of millions of U.S. tax dollars went to recipients in China and Russia in recent years without being properly tracked by the federal government, including a grant that enabled a state-run Russian lab to test cats on treadmills, according to Sen. Joni Ernst (R-Iowa).
Ernst and her staff investigators, working with auditors at the Government Accountability Office (GAO) and the Congressional Research Service, as well as two nonprofit Washington watchdogs—Open The Books (OTB) and the White Coat Waste Project (WCWP)—discovered dozens of other grants that weren’t counted on the federal government’s USASpending.gov internet database.
While the total value of the uncounted grants found by the Ernst team is $1.3 billion, that amount is just the tip of the iceberg, the GAO reported.
Among the newly discovered grants is $4.2 million to China’s infamous Wuhan Institute of Virology (WIV) “to conduct dangerous experiments on bat coronaviruses and transgenic mice,” according to a May 31 Ernst statement provided to The Epoch Times.
The $4.2 million exposed by Ernst is in addition to previously reported funding to the WIV for extensive gain-of-function research by Chinese scientists, much of it funded in whole or part prior to the COVID-19 pandemic by National Institutes for Health (NIH) grants channeled through the EcoHealth Alliance medical research nonprofit.
The NIH has awarded seven grants totaling more than $4.1 million to EcoHealth to study various aspects of SARS, MERS, and other coronavirus diseases.
Buying Chinese Puppy Parts
As part of another U.S.-funded grant, hearts and other organs from 425 dogs in China were purchased for medical research.
“These countryside dogs in China are part of the farmer’s household; they were mainly used for guarding. Their diet includes boiled rice, discarded raw food animal tissues, and whatever dogs can forage. These dogs were sold for food,” an NIH study uncovered by the Ernst researchers reads.
Other previously unreported grants exposed by the Ernst team include $1.6 million to Chinese companies from the federal government’s National School Lunch Program and $4.7 million for health insurance from a Russian company that was sanctioned by the United States in 2022 as a result of the invasion of Ukraine.
“It’s gravely concerning that Washington’s reckless spending has reached the point where nobody really knows where all tax dollars are going,” Ernst separately told The Epoch Times. “But I have the receipts, and I’m shining a light on this, so bureaucrats can no longer cover up their tracks, and taxpayers can know exactly what their hard-earned dollars are funding.”
The problem is that federal officials don’t rigorously track sub-awards made by initial grant recipients, according to the Iowa Republican. Such sub-awards are covered by a multitude of federal regulations that stipulate many conditions to ensure that the tax dollars are appropriately spent.
The GAO said in an April report that “limitations in sub-award data is a government-wide issue and not unique to U.S. funding to entities in China.”
“GAO is currently examining the state of federal government-wide sub-award data as part of a separate review,” the report reads.

The Eco-Health sub-awards to WIV illustrate the problem.
“Despite being required by law to make these receipts available to the public on the USAspending.gov website, EcoHealth tried to cover its tracks by intentionally not disclosing the amounts of taxpayer money being paid to WIV, which went unnoticed for years,” Ernst said in the statement.
“I was able to determine that more than $490 million of taxpayer money was paid to organizations in China [in] the last five years. That’s ten times more than GAO’s estimate! Over $870 million was paid to entities in Russia during the same period!
“Together that adds up to more than $1.3 billion paid to our adversaries. But again, these numbers still do not represent the total dollar amounts paid to institutions in China or Russia since those numbers are not tracked and the information that is being collected is incomplete.”
Adam Andrzejewski, founder and chairman of OTB, told The Epoch Times, “When following the money at the state and local level, the real corruption exists in the subcontractor payments. At the federal level, the existing system doesn’t even track many of those recipients.
“Without better reporting, agencies and appropriators don’t truly understand how tax dollars were used. We now know that taxpayer dollars are traded further downstream than originally realized with third- and fourth-tier recipients. These transactions need scrutiny. Requiring recipients to account for where and how they actually spend each dollar creates a record far better than agencies are capable of generating.”
Read more here...
Government
OraSure Technologies’ CFO Makes Bold Insider Purchase, Reigniting Investor Confidence
Executive Kenneth McGrath’s $500,000 buy read as promising signal about future for diagnostic test developer OraSure Technologies (NASDAQ:OSUR) saw…

Executive Kenneth McGrath’s $500,000 buy read as promising signal about future for diagnostic test developer
OraSure Technologies (NASDAQ:OSUR) saw a stock price re-rate on Thursday, climbing 11% after investors became aware of its CFO Kenneth McGrath buying shares in the diagnostic test developer. This latest rally in OSUR stock, gives traders and investors hope that the strong momentum from the beginning of 2023 might return.
OSUR shares had mounted an impressive 54% rally for 2023 through to May 10, when the first-quarter results update spooked investors.
The CFO’s trade was initially spotted on Fintel’s Insider Trading Tracker following the filing with the Securities and Exchange Commission.
Big Holdings Boost
In the Form 4 filing, McGrath, who assumed CFO duties in August 2022, disclosed buying 100,000 shares on May 30 in the approved trading window that was open post results.
McGrath on average paid $4.93 per share, giving the total transaction a value just shy of $500,000 and boosted his total share count ownership to 285,512 shares.
The chart below from the insider trading and analysis report for OSUR shows the share price performance and profit made from company officers in previous transactions:

Prior to joining OraSure, McGrath had an impressive eight-year tenure at Quest Diagnostics (NYSE:DGX), where he rose to the position of VP of Finance before departing. This is the first time that the CFO has bought stock in the company since August 2022. It is also worth noting that the purchase followed strong Q1 financial results, which exceeded Street forecasts.
Revenue Doubles
In its recently published Q1 update, OraSure Technologies told investors that it generated a whopping 129% increase in revenue to $155 million, surpassing analyst expectations of around $123 million.
Notably, the revenue growth was driven primarily by the success of OraSure’s COVID-19 products, which accounted for $118.4 million in revenue for the quarter and grew 282% over the previous year.
The surge in revenue for this product was largely driven by the federal government’s school testing program, which led to record test volumes. However, it is important to note that demand for InteliSwab is expected to decline in Q2 2023, prompting OraSure to scale down its COVID-19 production operations. As part of its broader strategy to consolidate manufacturing, the company plans to close an overseas production facility.
While the COVID-19 products division has been instrumental in OraSure’s recent success, its core business delivered stable flat sales of $36.6 million during the quarter.
In terms of net income, OraSure achieved an impressive result of $27.2 million, or $0.37 per share, in Q1, marking a significant improvement compared to the loss of $19.9 million, or a loss of $0.28 per share, in the same period last year. This result exceeded consensus forecasts of $0.16 per share. As of the end of the quarter, the company held $112.4 million in cash and cash equivalents.
Looking ahead to Q2, OraSure has provided revenue guidance in the range of $62 to $67 million, reflecting the lower order activity from the US government with $25 to $30 million expected sales for InteliSwab. The declining Covid related sales have been a core driver of the share price weakness in recent weeks.
While sales are likely to fall in the coming quarters, one positive for the company is its low debt balance during this period of rising cash rates. The chart below from Fintels financial metrics and ratios page for OSUR shows the cash flow performance of the business over the last five years.

Analyst Opinions
Stephen’s analyst Jacob Johnson thinks that outside of Covid, OSUR continues to execute on several cost and partnership initiatives which he believes appears to be bearing fruit. Johnson pointed out that three partnerships were signed during the quarter.
The analyst thinks that the ex-Covid growth story will be the new focus for investors from now on. The brokerage maintained its ‘equal-weight’ recommendation and $6.50 target price on the stock, matching Fintel’s consensus target price, suggesting OSUR stock could rise a further 29% in the next 12 months.
The post OraSure Technologies’ CFO Makes Bold Insider Purchase, Reigniting Investor Confidence appeared first on Fintel.
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