At a glance
HYGH charges 0.52% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $596.7M in assets, the 8th largest of that group; it paid 6.5% of its price in distributions over the past 12 months, monthly. Over the past year it returned +5.0% with distributions reinvested, the weakest of those 8 funds; over three years it returned +9.1% a year. At its worst it fell 23.7% in the 2020 crash (S&P 500: 33.7%) and 8.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 6 months after the lows.
The short version
iShares Interest Rate Hedged High Yield Bond ETF (HYGH) holds BlackRock's iShares iBoxx USD High Yield Corporate Bond ETF, a fund of below-investment-grade ("junk") corporate bonds. It adds interest rate swaps to cancel out most of that fund's sensitivity to rate changes, which leaves mainly credit risk. Its trailing yield was 6.5% as of October 27, 2026, paid monthly. The hedge does not cushion credit scares, such as early 2020's 23.7% drop.
Price history
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HYGH +5.0% 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 | |
|---|---|---|---|---|---|---|
| HYGH official prospectus, to Dec 31, 2025 | — | +7.38% | — | +6.92% | +6.40% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| Black Rock Interest Rate Hedged High Yield Bond Index index, same period | — | +6.81% | — | +6.40% | +6.38% | — |
| HYGH price data to Oct 27, 2026 | +3.8% | +5.0% | +9.1% | +6.8% | +5.8% | +4.7% |
- Over the year to Oct 27, 2026, HYGH returned +5.0%, 8th of 8 among similar funds.
- Its 5-year annualized return was +6.8% and its 10-year +5.8%.
- In the 2020 COVID crash it fell 23.7% and regained its old high 9 months after the low.
- Its worst full calendar year was 2015 (-6.1%); its best was 2016 (+13.2%).
- The deepest fall in its price history was 23.9% (Jan 16, 2020 to Mar 23, 2020), recovered by Dec 24, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.8% | — |
| 2025 | +6.9% | +7.38% |
| 2024 | +11.2% | +10.67% |
| 2023 | +12.2% | +12.29% |
| 2022 | -0.9% | -0.98% |
| 2021 | +5.9% | +5.73% |
| 2020 | +0.5% | +0.63% |
| 2019 | +11.1% | +10.95% |
| 2018 | -0.8% | -0.87% |
| 2017 | +6.4% | +6.53% |
| 2016 | +13.2% | +12.93% |
| 2015 | -6.1% | — |
| 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 23.6% over that stretch · deepest drop along the way 23.7%, back to its old high 9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4.9% over that stretch · deepest drop along the way 8.2%, back to its old high 5.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $4.1100 | |
| 2025 | $5.9100 | -12.7% |
| 2024 | $6.7700 | -10.0% |
| 2023 | $7.5200 | +47.9% |
| 2022 | $5.0842 | +52.7% |
| 2021 | $3.3301 | -5.1% |
| 2020 | $3.5091 | -19.9% |
| 2019 | $4.3816 | -19.9% |
| 2018 | $5.4668 | +25.5% |
| 2017 | $4.3556 | +5.8% |
| 2016 | $4.1175 | -20.4% |
| 2015 | $5.1724 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 93.46% of assets, and 48.51% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| iShares iBoxx USD High Yield Corporate Bond ETF | 93.46% |
By country
United States 93.46%By asset type
Stocks 93.46%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $112.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.77%, +0.30%, +0.44%.
How it works
HYGH tracks the BlackRock Interest Rate Hedged High Yield Bond Index, built by a BlackRock affiliate. The index pairs high-yield corporate bonds (bonds rated below investment grade, often called junk bonds) with contracts meant to offset interest rate risk. HYGH gets its bond exposure mainly by owning another fund, the iShares iBoxx USD High Yield Corporate Bond ETF, which made up 93.5% of assets as of July 31, 2026. That fund holds U.S. dollar bonds with an original maturity under 15 years.
The hedge comes from up to 10 interest rate swaps with different maturities. In each swap, HYGH pays a fixed rate and receives a floating rate. When rates rise, these swaps tend to gain value, offsetting falling bond prices; when rates fall, they tend to lose value and give back some of the bonds' gains. The index provider rebalances swap weights daily and replaces them with new contracts each month. The index also holds cash to reflect the collateral the swaps require.
The swaps do not hedge credit risk, the chance that borrowers miss payments, which can move junk bond prices more than rates do. Because it uses swaps beyond set limits, HYGH counts as a commodity pool, so BlackRock, as adviser, is also regulated by the Commodity Futures Trading Commission.
What it really costs
- HYGH charges 0.52% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.65% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.6% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $53 in the first year and $1,309 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYGH | $53 | $296 | $559 | $1,309 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- 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
It pays monthly income from junk bonds while hedging out most interest rate risk, though its credit risk makes it a higher-risk source of income.
HYGH could add monthly income with little sensitivity to interest rates. Its trailing yield was 6.5% as of October 27, 2026. The net expense ratio is 0.52%. In the SEC's standard example, that comes to $53 in the first year on $10,000 and $1,309 over 10 years. The fund launched in 2014, so it has no 2008 record. In 2020 it fell 23.7% between February 20 and March 23 and took about nine months to recover. That is a steep drop for a bond fund. In 2022, when rising rates hurt most bonds, it lost just 0.98% for the year, though it dipped 8.2% along the way. Its worst calendar year was 2015, down 6.1%. In a credit crunch, someone drawing income may have to sell shares well below their peak. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from junk bonds: the trailing yield was 6.5% as of October 27, 2026.
- Bond investors worried about rising rates. HYGH lost only 0.98% in 2022, when rate hikes hit most bond funds.
- Investors who want high yield credit exposure with the rate risk mostly removed through swaps, at a 0.52% net expense ratio.
Look elsewhere if
- Anyone counting on bonds to cushion stock crashes. HYGH fell 23.7% in early 2020, when stocks also plunged.
- Investors hoping falling rates will lift bond prices. The swaps give up those gains, so returns depend mostly on credit.
- Those who want a simple structure. The swaps, the commodity-pool status and a single underlying fund add layers a plain bond fund lacks.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HYGH this fund | 0.52% | $596.7M | +5.0% | +9.1% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does HYGH pay monthly dividends?
Yes. HYGH pays distributions monthly. Over the 12 months to October 27, 2026, it paid $5.54 per share, a trailing yield of 6.5%. The payouts come mainly from interest on the junk bonds held by its underlying fund, the iShares iBoxx USD High Yield Corporate Bond ETF. Payments vary from month to month. They can shrink if bond issuers default or interest income drops, so past payouts don't guarantee future ones.
What's the difference between HYGH and the iShares iBoxx High Yield Corporate Bond ETF?
HYGH owns that fund (about 93.5% of net assets as of July 31, 2026) and adds interest rate swaps that offset most of its rate sensitivity. The underlying fund tends to rise when rates fall and drop when they rise. HYGH largely removes that effect and keeps mainly the credit risk. That helped in 2022, when HYGH lost only 0.98%. When rates fall, HYGH tends to lag. Both carry the same default risk.
How has HYGH performed over 10 years?
HYGH returned 6.40% a year on average over the 10 years through December 31, 2025, according to its prospectus. Its index returned 6.38% over the same period. The fund returned 6.92% a year over five years and 7.38% over one year. The broad Bloomberg US Universal Index, which carries normal rate risk, returned 2.44% a year over 10 years and 0.06% over five. Calendar-year results ranged from -0.98% in 2022 to 12.93% in 2016.
Is HYGH safe for retirees?
Not in the way high-quality bond funds can be. HYGH holds junk bonds, which can default, and its rate hedge does nothing to offset that. Its deepest drop was 23.9%, from January 16 to March 23, 2020, and it took about nine months to recover. Its worst quarter was a 14.2% loss in early 2020. Volatility over the year to October 27, 2026, was a modest 3.5%, but calm stretches can end quickly when credit fears rise.
What is HYGH's expense ratio?
HYGH's net expense ratio is 0.52%, according to its prospectus filed February 23, 2026. Its management fee is 0.65%, reduced by a 0.60% fee waiver, and the total also includes other expenses. In the SEC's standard example, $10,000 earning 5% a year would cost about $53 after one year, $296 after three, $559 after five and $1,309 after ten. Costs climb faster after the first year, so the prospectus fee table is worth reading closely.