FlexShares High Yield Value-Scored Bond Index Fund

HYGV tracks a proprietary fundamental-weighted index of USD-denominated high-yield corporate bonds selected based on value, credit, and liquidity.

FlexShares High Yield Value-Scored Bond Index Fund (HYGV) is a junk bond ETF focused on fundamentals and risk management. HYGV is overweight in debt of U.S. industrial companies. Despite a high distribution rate, HYGV's dividend growth has not kept pace with inflation, and the share price points to a steep decay in value.

HYGV: Beating Other Junk Bond ETFs, But Lagging Fallen Angels

The FlexShares High Yield Value-Scored Bond ETF (HYGV) made its debut on 07/17/2018, and is a smart beta exchange traded fund that provides broad exposure to the High-Yield/Junk Bond ETFs category of the market.

Is FlexShares High Yield Value-Scored Bond ETF (HYGV) a Strong ETF Right Now?

Investing in high-yield bonds is becoming tricky, as credit spreads are near cycle lows and the market looks complacent. The FlexShares® High Yield Value-Scored Bond Index Fund ETF offers a means to tap into the high-yield bond market while emphasizing value and quality issuers. The fund's diversified portfolio, value-scoring approach, and focus on liquidity set it apart from traditional market-capitalization-weighted indices.

HYGV: A Filtered High-Yield Approach That Works

HYGV is one of the highest-yielding bond ETFs in the market, with an 8.8% dividend yield. Its total returns are above average too, and without any significant increase to risk or volatility. Fundamentals have somewhat improved in the recent past, with higher returns and strong dividend growth.

HYGV Is One Of The Highest-Yielding Bond ETFs With An 8.8% Yield

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ETFs offer investors diversified exposure to different asset classes, including U.S. and international equities, fixed-rate and variable rate bonds. Within each market sub-segment some ETFs offer particularly compelling yields. A short, curated overview of some of these ETFs follows. Yields range from 5% - 10%.

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2023 saw a severe bear market and low valuations in the bond market, creating an opportunity for bond allocation in portfolios. The bond market experienced sharp declines while equities reached all-time highs, highlighting the difference in reaction to interest rate increases. The HYGV smart beta ETF offers credit exposure with a 9.3% yield, making it an attractive option compared to the 4% earnings yield of US equities.

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Despite the Fed's most aggressive tightening campaign in decades, the U.S. economy has displayed remarkable resilience, characterized by a robust labor market and strong consumer spending. Inflation too has steadily decreased since reaching its highest point in June 2022.

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HYGV has a strong 8.6% dividend yield, highest amongst its peers. The fund performs well on most other relevant metrics too. Outperformance relative to other bond sub-asset classes was due to the fund's comparatively low duration, plus aggressive Fed hikes.

HYGV: Over 8% Yield, Strong Dividend Growth

The FlexShares High Yield Value-Scored Bond Index Fund (HYGV) is a smart beta ETF that focuses on the U.S. high yield market. The fund follows an index which uses proprietary value, credit, and liquidity scores to identify undervalued names. HYGV has been successful in outperforming the market, but underperforms the iShares High Yield Bond Factor ETF (HYDB) and takes on more credit risk.

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High-yield corporate bond ETFs offer strong, growing dividends, with HYGV, FALN, and SPHY standing out as strong investment opportunities. HYGV provides a particularly strong 8.4% yield, FALN offers a strong performance track-record due to focusing on Fallen Angels, and SPHY has the lowest 0.04% expense ratio. These funds share characteristics such as strong yields and dividend growth, low interest rate risk, and high credit risk, making them suitable for income investors.

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HYGV is a “junk bond" ETF, namely a high-yield corporate bond fund. It invests only in issuers selected based on value characteristics.

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Is FlexShares High Yield ValueScored Bond ETF (HYGV) a Strong ETF Right Now?

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Real assets, particularly infrastructure, are highly complementary to high-yield fixed income investments.  One pairing that works well together is the FlexShares High Yield Value-Score Bond Index Fund (HYGV) and the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA).

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The top four ETFs in FlexShares' line-up that took in the most new assets in June are funds that offer potential upside in an inflationary environment, including real assets and income-generating funds. The FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) took the top spot after seeing $100 million in net inflows during the month.

Investors Allocated to These 4 FlexShares ETFs in June

With the Fed poised to continue hiking interest rates through the end of the year to combat inflation, many investors are worried about the potential impact on their investments.  FlexShares' research into the past four Fed rate hike cycles (2015, 2004, 1999, and 1994) suggests that high yield bonds may be well positioned for stronger [.

Navigate Rising Rates With HYGV

With interest rates expected to continue to rise through the end of the year, many investors are worried about the potential impact on their investments.  FlexShares' research into the past four Fed rate hike cycles (2015, 2004, 1999, and 1994) suggests that high-yield bonds may be well-positioned for stronger returns during rising-rate environments.

This Fixed Income ETF Is Poised To Outperform Equities During Rising Rates

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The top three ETFs in FlexShares' line-up that raked in the newest assets in March are largely funds that offer high income, demonstrating investors' desire for yield. The FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) took in the most flows in March, taking in $455 million over one month and $566 million [.

Investors Allocated to These 3 FlexShares ETFs in March

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The top five ETFs in FlexShares' line-up that raked in the most new funds in January are largely funds that offer high dividend yields, demonstrating investors' desire for income amid a period of low-but-rising interest rates. The FlexShares High Yield Value-Score Bond Index Fund (HYGV) saw the greatest inflows among FlexShares' line-up during January, garnering [.

Which FlexShares ETFs Took in the Most Assets in January?

Getting high yield doesn't automatically mean that fixed income investors must take on high risk, especially with ETFs like the FlexShares High Yield Value-Scored Bond Index Fund (HYGV). While the Consumer Price Index (CPI) keeps rising in the U.S., the pain of inflation is shared in other parts of the world.

Get Higher Yield With Less Risk Amid Rising Global Inflation

To get more yield, fixed income investors typically have to go far out on the yield curve, but with the benchmark 30-year Treasury note hitting lows, high-yield options are available. One such ETF to consider is the FlexShares High Yield Value-Scored Bond Index Fund (HYGV).

Get Max Yield With HYGV as 30-Year Note Falls to New Low

An influx of bond investors are heading back into high yield, making exchange traded funds (ETFs) like the FlexShares High Yield Value-Scored Bond Index Fund (HYGV) an option to consider. While the threat of inflation and rising interest rates may be spooking the capital markets, bond investors may be looking to stay a step ahead with high-yield [.

While Investors Jump Back Into High Yield, This ETF Focuses on Value

Treasury yields have been moving higher, making fixed income investors wonder whether high yield is a prime option, but it can be with ETFs like the FlexShares High Yield Value-Scored Bond Index Fund (HYGV). As yields rise and spreads tighten, bond investors are pondering whether high yield is worth the risk in order to extract that [.

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