What are high-yield bond ETFs?
High-yield bonds, often called junk bonds, are loans to companies with credit ratings below investment grade. That means rating agencies see a greater risk the company won't repay, so these borrowers pay higher interest. The ETFs in this guide hold such bonds, mostly US dollar-denominated corporate debt, and spread their money very widely. USHY has 1,903 holdings, and its 10 largest make up just 3.08% of assets. The same issuers keep showing up near the top. EchoStar bonds rank among the five largest positions in USHY, HYG, SPHY, SHYG, JNK, SJNK, HYLB, SCYB and HYS. Meridian Arc Holdco does the same in all five of the largest funds.
Most of the money sits in index funds. USHY, HYG, SPHY, JNK, HYLB and SCYB track broad high-yield indexes. SHYG, SJNK and HYS stick to shorter-dated bonds. BSJR tracks an index built around bonds maturing in 2027, and HYGV's index scores bonds on value. PHYL, HYLS, FLHY and SYFI aim for income or total return instead of tracking an index, with 289 to 806 holdings each. Two ProShares funds use leverage or bet against the market: SJB aims for the opposite of a high-yield index's daily move and UJB for twice that move. HYGW adds income by writing call options, which gives up some potential gains.
The median expense ratio, the yearly fee taken out of fund assets, is 0.40%. Fees run from 0.03% for SCYB up to 0.95% at the high end. SPHY and HYLB charge 0.05% and USHY 0.08%. HYG, the second-largest fund, charges 0.49%, and HYLS charges 0.69%.
The money is concentrated in a few funds. The 60 high-yield bond ETFs hold about $104.7 billion in total, and 67.9% of it sits in the five largest: USHY, HYG, SPHY, SHYG and JNK. USHY alone holds about $28.6 billion.
The largest high-yield bond ETFs, side by side
Swipe the table to see all 5 funds.
| USHY | HYG | SPHY | SHYG | JNK | |
|---|---|---|---|---|---|
| Net assets | $28.59B | $16.19B | $11.33B | $7.60B | $7.35B |
| Expense ratio | 0.08% | 0.49% | 0.05% | 0.3% | 0.4% |
| Holdings | 1,903 | 1,322 | 1,948 | 1,160 | 1,235 |
| In the 10 largest | 3.08% | 3.58% | 3.13% | 4.18% | 4.52% |
| Biggest holding | 1261229 Bc Ltd (0.47%) | 1261229 Bc Ltd (0.5%) | 1261229 Bc Ltd (0.42%) | Meridian Arc Holdco Llc (0.58%) | 1261229 Bc Ltd (0.63%) |
| Yield | 7.18% | 6.1% | 7.41% | 7.16% | 6.78% |
| 1-year return | +1.2% | +0.9% | +1.8% | +2.4% | +1.6% |
| 3 years, a year | +7.7% | +7.4% | +8.9% | +8.0% | +8.7% |
| 5 years, a year | +3.6% | +3.2% | +4.0% | +4.7% | +3.3% |
| Worst drop, past year | -2.8% | -2.9% | -2.8% | -2.0% | -3.0% |
| Launched | 2017 | 2007 | 2012 | 2013 | 2007 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Nov 2, 2026.
Head to head
USHY vs HYG
Both are iShares index funds of dollar-denominated junk bonds. They share 48.2% of their assets (507 holdings), the most of any pair among the five largest funds. USHY is broader: 1,903 holdings versus 1,322, with its top 10 at 3.08% versus 3.58%. Each has 1261229 BC Ltd as its biggest position, near 0.5%. USHY charges 0.08% a year and HYG 0.49%. As of November 2, 2026, USHY's one-year return was 1.2% to HYG's 0.9%, with worst drops of 2.8% and 2.9%. USHY may suit cost-focused holders, and HYG those who value a record going back to 2007.
HYG vs JNK
Both launched in 2007 but track different indexes: HYG an iBoxx index, JNK a Bloomberg one. They share 42.9% of their assets (380 holdings). JNK is a bit more concentrated, with its top 10 at 4.52% versus 3.58% and 1261229 BC Ltd at 0.63% versus 0.50%. JNK charges 0.40% a year to HYG's 0.49%. As of November 2, 2026, it yielded 6.78% to HYG's 6.1%. JNK's one-year return was 1.6% to HYG's 0.9%, with worst drops of 3.0% and 2.9%. In the 2022 bear market, JNK fell 15.7% and HYG 14.6%. Both may suit investors who value a long track record.
USHY vs SHYG
These two overlap least among the five largest funds, sharing 30% of assets. USHY covers the broad market, while SHYG holds only bonds maturing in under five years. SHYG is more concentrated, with its top 10 at 4.18% versus 3.08% and Meridian Arc Holdco its biggest position at 0.58%. USHY costs 0.08% a year and SHYG 0.30%. As of November 2, 2026, SHYG's one-year return was 2.4% to USHY's 1.2%, and its worst drop was 2.0% versus 2.8%. In the 2022 bear market it fell 8.1% against 14.6%. SHYG may suit those wanting less interest-rate sensitivity, and USHY those focused on cost.
How much do the largest high-yield bond ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| USHY and HYG | 48.2% | 507 | |
| HYG and JNK | 42.9% | 380 | |
| HYG and SPHY | 41.2% | 397 | |
| SPHY and JNK | 40.7% | 401 | |
| USHY and SPHY | 40% | 421 | |
| USHY and JNK | 36.7% | 382 | |
| HYG and SHYG | 34.5% | 311 | |
| SPHY and SHYG | 32.2% | 314 | |
| SHYG and JNK | 30.8% | 250 | |
| USHY and SHYG | 30% | 328 |
From each fund’s full holdings in its latest N-PORT report.
How have high-yield bond ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing high-yield bond ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | HYXU iShares International High Yield Bond ETF | $44.2M | 0.4% | +0.4% | +6.4% | +5.9% | +11.8% |
| 2 | HYZD WisdomTree Interest Rate Hedged High Yield Bond F… | $293.9M | 0.43% | +0.4% | +4.3% | +5.4% | +8.7% |
| 3 | HYGH iShares Interest Rate Hedged High Yield Bond ETF | $596.7M | 0.52% | -0.4% | +3.8% | +5.0% | +9.1% |
| 4 | HYHG ProShares High Yield-Interest Rate Hedged ETF | $204.4M | 0.5% | -0.9% | +3.7% | +4.8% | +8.6% |
| 5 | FLRT Pacer Pacific Asset Floating Rate High Income ETF | $659.4M | 0.6% | -0.3% | +3.1% | +4.5% | +7.5% |
| 6 | BSJS Invesco BulletShares 2028 High Yield Corporate Bo… | $763.9M | 0.42% | +0.7% | +2.9% | +3.9% | +9.1% |
| 7 | IBHH iShares iBonds 2028 Term High Yield and Income ETF | $457.2M | 0.35% | +0.7% | +2.7% | +3.6% | +8.9% |
| 8 | FDHY Fidelity Enhanced High Yield ETF | $605.5M | 0.35% | +0.3% | +2.3% | +3.4% | +9.2% |
| 9 | FHYS Federated Hermes Short Duration High Yield ETF | $55.1M | 0.5% | +0.7% | +2.1% | +3.3% | +7.3% |
| 10 | HYGW iShares High Yield Corporate Bond BuyWrite Strate… | $112.1M | 0.69% | +0.1% | +2.1% | +3.2% | +6.1% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How high-yield bond ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| USHY | not yet launched | not yet launched | -14.6% |
| HYG | -32.9% | -21.9% | -14.6% |
| SPHY | not yet launched | not yet launched | -14.2% |
| SHYG | not yet launched | -19.2% | -8.1% |
| JNK | not yet launched | -22.8% | -15.7% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives high-yield bond ETFs?
These funds lend to companies with weaker finances, so their prices rise and fall with those borrowers' ability to pay. When the economy slows, profits shrink and defaults rise. Investors then demand a bigger credit spread, the extra interest over safer government bonds, and that pushes bond prices down. Interest rates matter too. When rates rise, existing bonds lose value, and longer-dated bonds lose more. Higher rates also make it costlier for indebted companies to refinance as their bonds come due.
In past downturns, these funds fell less than stocks, but they still fell hard. In the 2008 financial crisis, HYG dropped 32.9%, against 55.2% for the S&P 500. In the 2020 COVID crash, HYG fell 21.9%, JNK 22.8% and SHYG 19.2%, while the S&P 500 fell 33.7%. In the 2022 bear market, when interest rates rose quickly, USHY and HYG each fell 14.6%, SPHY 14.2% and JNK 15.7%, compared with 24.5% for the S&P 500. SHYG, which holds only bonds maturing within five years, fell 8.1%. That shows how shorter maturities can soften the blow from rising rates.
High-yield bond ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | SCYB Schwab High Yield Bond ETF | 0.03% | $3 a year | $2.86B |
| 2 | SPHY SPDR Portfolio High Yield Bond ETF | 0.05% | $5 a year | $11.33B |
| 3 | HYLB Xtrackers USD High Yield Corporate Bond ETF | 0.05% | $5 a year | $3.56B |
| 4 | USHY iShares Broad USD High Yield Corporate Bond E… | 0.08% | $8 a year | $28.59B |
| 5 | GHYB Goldman Sachs Access High Yield Corporate Bon… | 0.15% | $15 a year | $143.0M |
Ordinary funds with at least $10 million in net assets. The median ordinary high-yield bond ETF charges 0.4% a year; leveraged and inverse funds usually charge more.
Do high-yield bond ETFs pay dividends?
58 of the 58 ordinary high-yield bond ETFs with a page here paid distributions over the last 12 months, with a median yield of 6.76%.
| Highest yields | Yield | Net assets |
|---|---|---|
| XCCC BondBloxx CCC-Rated USD High Yield Corporate … | 11.14% | $263.7M |
| HYGW iShares High Yield Corporate Bond BuyWrite St… | 11.06% | $112.1M |
| CDX Simplify High Yield ETF | 8.93% | $393.5M |
| HYUP Xtrackers High Beta High Yield Bond ETF | 7.73% | $47.6M |
| YLD Principal Active High Yield ETF | 7.67% | $572.8M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets. Some of these yields come from selling options, which gives up some of the gains.
How to choose a high-yield bond ETF
- Fees range from 0.03% to 0.95%. SCYB charges 0.03% a year, SPHY and HYLB 0.05% and USHY 0.08%. HYG charges 0.49% and HYLS 0.69%. With yields around 7%, a fee gap that wide takes a noticeable share of the income.
- Broad market or short-term bonds. USHY, SPHY, HYG and JNK cover the broad market. SHYG, SJNK and HYS hold shorter-dated bonds, which react less to interest rates. In 2022, SHYG fell 8.1% and USHY 14.6%, but SHYG costs 0.30% to USHY's 0.08%.
- Index tracking or a manager's picks. Most large funds track indexes, and HYGV's index scores bonds on value. PHYL, HYLS, FLHY and SYFI aim for income or total return instead. They hold fewer bonds and charge more, from 0.39% to 0.69%.
- How widely each fund spreads money. USHY's 10 largest positions make up 3.08% of assets, so no single company matters much. BSJR, with 93 holdings, puts 23.87% in its top 10, and HYLS puts 12.03%. One issuer's trouble would hurt those funds more.
- Target-maturity funds behave like single bonds. BSJR follows an index built around bonds maturing in 2027. It is designed to wind down around that year, much like holding one bond to maturity. Ongoing funds such as SPHY keep replacing bonds as they mature.
- Leveraged, inverse and option-income versions. SJB aims for the opposite of a high-yield index's daily move and UJB for twice that move, so both are built for short-term trading. HYGW writes call options for extra income and gives up some potential gains in return.
What are the risks of high-yield bond ETFs?
- Defaults rise when the economy weakens. Junk-rated companies are more likely to miss payments in a recession, and bond prices drop as investors demand more interest. HYG fell 32.9% in the 2008 financial crisis, and JNK fell 22.8% in the 2020 COVID crash.
- Rising interest rates cut bond prices. When rates climb, existing bonds lose value. In the 2022 bear market, JNK fell 15.7%, USHY 14.6% and SPHY 14.2%. SHYG, which holds shorter-maturity bonds, held up better but still lost 8.1%.
- A calm year can hide the risk. Over the year to November 2, 2026, the five largest funds' volatility (how much returns swing) was 3.1% to 3.9%, and their worst drops were 2% to 3%. Past downturns were several times deeper.
- Chasing the highest yields adds risk. XCCC holds CCC-rated bonds near the bottom of the junk scale. It yielded 11.14% but had the group's worst one-year return, -6.4%, as of November 2, 2026. HYGW's 11.06% yield relies partly on writing call options, which caps gains.
- Leveraged and inverse funds reset daily. SJB (-1x) and UJB (2x) target a multiple of one day's index move, so longer-term results drift from that multiple. Over the year to November 2, 2026, UJB lost 1.9% while the median high-yield fund gained 1.7%.
Leveraged and inverse high-yield bond ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all high-yield bond ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | USHY iShares Broad USD High Yield Corporate Bond ETF | $28.59B | 0.08% | 7.18% | 0.0% | +1.2% | +3.6% |
| 2 | HYG iShares iBoxx $ High Yield Corporate Bond ETF | $16.19B | 0.49% | 6.1% | -0.3% | +0.9% | +3.2% |
| 3 | SPHY SPDR Portfolio High Yield Bond ETF | $11.33B | 0.05% | 7.41% | +1.1% | +1.8% | +4.0% |
| 4 | SHYG iShares 0-5 Year High Yield Corporate Bond ETF | $7.60B | 0.3% | 7.16% | +1.6% | +2.4% | +4.7% |
| 5 | JNK SPDR Bloomberg High Yield Bond ETF | $7.35B | 0.4% | 6.78% | +0.8% | +1.6% | +3.3% |
| 6 | SJNK SPDR Bloomberg Short Term High Yield Bond ETF | $4.88B | 0.4% | 7.05% | +0.8% | +1.5% | +4.5% |
| 7 | HYLB Xtrackers USD High Yield Corporate Bond ETF | $3.56B | 0.05% | 6.7% | +0.8% | +1.6% | +3.7% |
| 8 | SCYB Schwab High Yield Bond ETF | $2.86B | 0.03% | 7.12% | +1.0% | +1.6% | — |
| 9 | HYS PIMCO 0-5 Year High Yield Corporate Bond Index Ex… | $1.69B | 0.55% | 7.58% | +0.3% | +1.2% | +4.9% |
| 10 | HYLS First Trust Tactical High Yield ETF | $1.62B | 0.69% | 7.42% | +0.4% | +1.6% | +3.0% |
Questions investors ask about high-yield bond ETFs
What is the largest high-yield bond ETF?
USHY, the iShares Broad USD High Yield Corporate Bond ETF, is the largest, with about $28.6 billion in net assets. HYG, also from iShares, comes next at about $16.2 billion. SPHY follows at $11.3 billion, then SHYG at $7.6 billion and JNK at $7.3 billion. Together those five hold 67.9% of the money in US-listed high-yield bond ETFs.
What is the cheapest high-yield bond ETF?
SCYB, the Schwab High Yield Bond ETF, has the lowest expense ratio, at 0.03% a year. SPHY and HYLB charge 0.05%, USHY 0.08% and GHYB 0.15%. That compares with a median of 0.40% for the group and 0.49% for HYG. SCYB is newer and smaller than SPHY or USHY: it launched in July 2023 and holds about $2.9 billion.
USHY vs HYG: what's the difference?
Both are iShares index funds of US dollar-denominated high-yield corporate bonds, and they share 48.2% of their assets. The main gaps are cost and breadth. USHY charges 0.08% a year and has 1,903 holdings, while HYG charges 0.49% and has 1,322. As of November 2, 2026, USHY yielded 7.18% to HYG's 6.1%, and its one-year return was 1.2% versus 0.9%. HYG has the longer record, dating to 2007.
Do high-yield bond ETFs pay dividends?
Yes. All 58 funds with a reported yield pay distributions, and their median yield was 6.76% as of November 2, 2026. Among the largest, SPHY yielded 7.41%, USHY 7.18% and HYG 6.1%. XCCC, which holds CCC-rated bonds, had the highest yield at 11.14%, followed by HYGW at 11.06%. The payouts come mainly from bond interest. In taxable accounts, that interest is generally taxed as ordinary income rather than at qualified-dividend rates.
Do high-yield bond ETFs own EchoStar?
Yes, many do, though they own its bonds, not its shares. EchoStar debt ranks among the five largest positions in USHY, HYG, SPHY, SHYG, JNK, SJNK, HYLB, SCYB and HYS. It is still a small slice: 0.39% of USHY, 0.43% of HYG and 0.63% of SJNK. The big index funds spread money so widely that the largest single position in USHY, HYG or SPHY is only about 0.5% of assets.
How many high-yield bond ETFs are there?
There are 60 US-listed high-yield bond ETFs, holding about $104.7 billion in total. Two of them, SJB and UJB, are leveraged or inverse funds. The money is concentrated: the five largest, USHY, HYG, SPHY, SHYG and JNK, hold 67.9% of the total. The rest include short-term funds such as SJNK and HYS, actively managed funds such as PHYL and FLHY, and the target-maturity fund BSJR.
What are leveraged and inverse high-yield bond ETFs?
Two ProShares funds fill this role. SJB aims for the opposite (-1x) of a high-yield bond index's daily return, and UJB aims for twice (2x) the daily return. Because they reset every day, results over months can drift far from the stated multiple. Over the year to November 2, 2026, UJB lost 1.9% while the median high-yield fund gained 1.7%. Both are small, at about $45 million and $17 million, and are designed for short-term trading rather than long-term holding.
How do you invest in high-yield bonds?
A simple route is a high-yield bond ETF, which trades like a stock in a brokerage account and spreads money across many bonds. SPHY has 1,948 holdings and USHY has 1,903. The choices include broad funds, short-term funds such as SHYG and SJNK, actively managed funds such as PHYL, and target-maturity funds such as BSJR. Owning individual junk bonds directly means researching each company's finances and holding far fewer issuers.
Is there a Vanguard, Fidelity or Schwab high-yield bond ETF?
Yes. Fidelity offers 2: FDHY (Fidelity Enhanced High Yield ETF), FSYD (Fidelity Sustainable High Yield ETF). Schwab offers one: SCYB (Schwab High Yield Bond ETF). Vanguard doesn’t have a high-yield bond ETF.
