At a glance
HYDB charges 0.35% a year, below the 0.49% average of the 7 funds most like it (the 3rd cheapest of 8). It has $1.61B in assets, the 8th largest of that group; it paid 7.16% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.9% with distributions reinvested, 7th of those 8 funds; over three years it returned +8.7% a year. At its worst it fell 21.6% in the 2020 crash (S&P 500: 33.7%) and 14.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 14 months after the lows. Its ten largest positions make up 7.8% of the fund, out of 249 in all.
The short version
The iShares High Yield Systematic Bond ETF (HYDB), from BlackRock, tracks the BlackRock High Yield Systematic Bond Index, a rules-based mix of U.S. dollar "junk" (below investment-grade) corporate bonds. Traditional high-yield indexes weight bonds by size. This one screens out the bonds judged most likely to default and leans toward bonds that pay more for their risk. It charges 0.35% a year: less than HYG's 0.49%, but well above USHY's 0.08%.
Price history
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HYDB +0.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HYDB official prospectus, to Dec 31, 2025 | — | +8.08% | — | +5.02% | — | +5.73% |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | — | +2.12% |
| Black Rock High Yield Systematic Bond Index index, same period | — | +8.91% | — | +5.64% | — | +6.16% |
| HYDB price data to Oct 27, 2026 | +0.1% | +0.9% | +8.7% | +4.1% | — | +5.1% |
- Over the year to Oct 27, 2026, HYDB returned +0.9%, 7th of 8 among similar funds.
- Its 5-year annualized return was +4.1%.
- In the 2020 COVID crash it fell 21.6% and regained its old high 6.5 months after the low.
- Its worst full calendar year was 2022 (-10.0%); its best was 2019 (+16.2%).
- The deepest fall in its price history was 21.6% (Feb 20, 2020 to Mar 23, 2020), recovered by Oct 8, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.1% | — |
| 2025 | +8.1% | +8.08% |
| 2024 | +9.2% | +8.95% |
| 2023 | +14.1% | +14.78% |
| 2022 | -10.0% | -10.20% |
| 2021 | +5.1% | +5.27% |
| 2020 | +7.4% | +7.55% |
| 2019 | +16.2% | +15.91% |
| 2018 | -3.2% | -2.88% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.6% over that stretch · deepest drop along the way 21.6%, back to its old high 6.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.3% over that stretch · deepest drop along the way 14%, back to its old high 14.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.4000 | |
| 2025 | $3.3400 | +1.5% |
| 2024 | $3.2900 | +1.2% |
| 2023 | $3.2500 | +18.2% |
| 2022 | $2.7500 | +14.1% |
| 2021 | $2.4100 | -19.1% |
| 2020 | $2.9800 | +2.8% |
| 2019 | $2.9000 | +1.8% |
| 2018 | $2.8500 |
What's inside
As of Aug 31, 2026, the fund held 249 securities; the ten largest made up 7.82% of assets, and 14.74% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| MPT OPER PARTNERSP/FINL Bonds and notes | 1.18% | |
| DISCOVERY HOLDINGS INC Bonds and notes | 0.75% | |
| GALAXY HELIOS DATA CNTR Bonds and notes | 0.74% | |
| TALEN ENERGY SUPPLY LLC Bonds and notes | 0.74% | |
| PARAMOUNT GLOBAL Bonds and notes | 0.74% | |
| VENTURE GLOBAL LNG INC Bonds and notes | 0.74% | |
| DAVITA INC Bonds and notes | 0.73% | |
| APLD COMPUTECO 3 LLC Bonds and notes | 0.73% | |
| COMSTOCK RESOURCES INC Bonds and notes | 0.73% | |
| ROCKETMTGE CO-ISSUER INC Bonds and notes | 0.73% | |
| SURGERY CENTER HOLDINGS Bonds and notes | 0.73% | |
| NOVELIS CORP Bonds and notes | 0.73% | |
| SIX FLAGS/CAN WON/MILLEN Bonds and notes | 0.73% | |
| POST HOLDINGS INC Bonds and notes | 0.73% | |
| CAESARS ENTERTAIN INC Bonds and notes | 0.73% |
By country
United States 82.45%Canada 3.3%United Kingdom 2.34%Japan 2.26%Australia 1.51%By issuer
Companies 90.85%Other 5.76%The bonds mature in 5.2 years on average (weighted by size), with an average coupon of 6.99%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $4.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.22%, -0.38%, +1.08%.
How it works
The index is built by BlackRock Index Services, a BlackRock affiliate. It starts with fixed-rate, U.S. dollar corporate bonds rated below investment grade, meaning below BBB- at S&P or Fitch, or below Baa3 at Moody's. When all three agencies rate a bond, the middle rating decides. Each bond needs at least $350 million outstanding and at least one year left to maturity. Bonds from non-U.S. companies qualify, and so do 144A bonds, which are sold privately to large institutions instead of being publicly registered.
Next, the index drops the bonds with the highest estimated chance of default. It then gives more weight to bonds whose extra yield looks attractive after allowing for expected defaults. It also limits trading and keeps duration (a bond's sensitivity to interest rates) within a set range of the wider high-yield market. The index rebalances on the last business day of each month. As of February 28, 2026, it held 254 issues, with large weights in consumer goods and services, energy and financials.
The fund uses representative sampling, which means it may own a subset of the index that closely matches its overall profile. At least 80% of assets go into index bonds. Up to 10% can go into futures, options, swaps or other bonds. The fund can lend out up to one-third of its assets. The prospectus lists portfolio turnover of 93%.
What it really costs
- HYDB charges 0.35% a year, versus an average of 0.49% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYDB | $36 | $113 | $197 | $443 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its main appeal is monthly income from high-yield corporate bonds, which comes with credit risk and deep drops in market sell-offs.
HYDB could add monthly income. Its trailing 12-month yield was 7.16% as of October 27, 2026. The tradeoff is sharp drops at bad moments. The fund launched in 2017, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 21.6% between February 20 and March 23, 2020, then took about 6.5 months to recover. In 2022 it fell 14% and took about 14 months to recover, getting back to its old high on November 29, 2023. Its worst calendar year was 2022, at -10.2%. Anyone selling shares for spending money during stretches like those would lock in losses. In the SEC's standard example on $10,000, costs come to $36 after one year and $443 after 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts from junk bonds; the trailing yield was 7.16% as of October 27, 2026.
- Investors who prefer an index that screens out the high-yield bonds most likely to default over one that simply weights bonds by size.
- Those who want wide diversification: about 249 issuers, with the top 10 holdings at just 7.82% of assets as of August 31, 2026.
Look elsewhere if
- Cost-focused investors: USHY charges 0.08% and SPHY 0.05%, compared with HYDB's 0.35%.
- Anyone who would struggle with drops like the 21.6% fall in early 2020 or the -10.2% calendar year in 2022.
- Those who prefer a larger fund: at $1.61 billion as of August 31, 2026, HYDB was the smallest of eight similar funds.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HYDB this fund | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
Questions investors ask
Is HYDB good for retirement income?
It can deliver high monthly income, but it carries more risk than funds holding investment-grade bonds. HYDB pays distributions monthly. Its trailing yield, meaning the past 12 months of payouts divided by the share price, was 7.16% as of October 27, 2026. The catch is that it holds high-yield, or "junk," bonds from companies with weaker credit. The fund lost 10.2% in 2022. It may suit retirees who want extra income from one slice of their bond holdings and can ride out drops like that.
What's the difference between HYDB and HYG?
Both are iShares ETFs from BlackRock that hold high-yield corporate bonds, but they choose bonds differently. HYG follows an iBoxx high-yield index. HYDB's index screens out the bonds judged most likely to default. HYDB costs less, at 0.35% a year versus 0.49%. It is also far smaller, with $1.6 billion in net assets against HYG's $16.2 billion as of August 31, 2026. HYDB returned 0.9% over one year to October 27, 2026, versus 1.6% for HYG to October 30. Their three-year annual returns were close: 8.7% versus 8.5%.
What is HYDB's expense ratio?
HYDB's expense ratio, the yearly fee taken from fund assets, is 0.35%. All of it is a management fee, according to the prospectus filed June 18, 2026. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $36 in one year, $197 over five years and $443 over 10 years. That is below the 0.49% average among comparable bond ETFs, but USHY charges 0.08% and SPHY 0.05%. Turnover of 93% a year also brings trading costs that the expense ratio leaves out.
How does HYDB pick its bonds?
It tracks the BlackRock High Yield Systematic Bond Index, a rules-based index from a BlackRock affiliate. Eligible bonds are US-dollar, fixed-rate corporate bonds rated below investment grade, with at least $350 million outstanding and a year or more to maturity. The rules first drop bonds with the highest estimated chance of default. Then they favor bonds paying the most extra yield for their default risk. The index had 254 issues as of February 28, 2026, and rebalances monthly. The fund may hold a sample rather than every bond.
Is HYDB safer than other junk bond funds?
Not necessarily. The prospectus calls the index's bonds "defensive" because its rules try to avoid likely defaults. But they are still junk bonds that can default and swing in price. HYDB fell 21.6% from February 20 to March 23, 2020, and took about 6.5 months to recover. In 2022 it dropped 14% from peak to low and needed about 14 months to regain that ground. The prospectus also warns there is no assurance the index's method will judge bonds accurately.