At a glance
HYGV charges 0.37% a year, below the 0.48% average of the 7 funds most like it (the 4th cheapest of 8). It has $1.10B in assets, the 8th largest of that group; it paid 7.66% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.4% with distributions reinvested, 5th of those 8 funds; over three years it returned +8.2% a year. At its worst it fell 23.5% in the 2020 crash (S&P 500: 33.7%) and 17.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 18 months after the lows. Its ten largest positions make up 19.9% of the fund, out of 1,011 in all.
The short version
FlexShares High Yield Value-Scored Bond Index Fund (HYGV), from Northern Trust, tracks an index of US-dollar high-yield ("junk") corporate bonds. Northern Trust's own value, credit and liquidity scores decide which bonds go in and how much each gets. The fund pays income monthly, with a trailing 12-month yield of 7.66% as of October 27, 2026. Its 0.37% expense ratio is below the 0.48% average of similar funds. Broad high-yield index ETFs charge as little as 0.05% to 0.08%.
Price history
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HYGV +1.4% 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 | |
|---|---|---|---|---|---|---|
| HYGV official prospectus, to Dec 31, 2025 | — | +7.89% | — | +3.92% | — | +5.11% |
| Bloomberg Universal Index index, same period | — | +7.58% | — | +0.06% | — | +2.38% |
| ICE BofA US High Yield Index index, same period | — | +8.50% | — | +4.50% | — | +5.30% |
| Northern Trust High Yield Value Scored US Corporate Bond Index SM index, same period | — | +8.31% | — | +5.02% | — | +6.36% |
| HYGV price data to Oct 27, 2026 | +0.6% | +1.4% | +8.2% | +3.0% | — | +4.6% |
- Over the year to Oct 27, 2026, HYGV returned +1.4%, 5th of 8 among similar funds.
- Its 5-year annualized return was +3.0%.
- In the 2020 COVID crash it fell 23.5% and regained its old high 7.4 months after the low.
- Its worst full calendar year was 2022 (-12.6%); its best was 2019 (+15.8%).
- The deepest fall in its price history was 23.5% (Feb 20, 2020 to Mar 23, 2020), recovered by Nov 4, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.6% | — |
| 2025 | +7.9% | +7.89% |
| 2024 | +8.0% | +7.70% |
| 2023 | +12.1% | +12.98% |
| 2022 | -12.6% | -13.01% |
| 2021 | +5.9% | +6.14% |
| 2020 | +7.4% | +7.92% |
| 2019 | +15.8% | +15.61% |
| 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 23.4% over that stretch · deepest drop along the way 23.5%, back to its old high 7.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 16.2% over that stretch · deepest drop along the way 17%, back to its old high 17.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.2300 | |
| 2025 | $3.0300 | -9.0% |
| 2024 | $3.3300 | -7.2% |
| 2023 | $3.5900 | +18.2% |
| 2022 | $3.0385 | +2.1% |
| 2021 | $2.9758 | +7.2% |
| 2020 | $2.7761 | -28.1% |
| 2019 | $3.8595 |
What's inside
As of Jul 31, 2026, the fund held 1,011 securities; the ten largest made up 19.85% of assets, and 2.95% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| CF SECURED LLC RA | 11.07% | |
| THE BANK OF NOVA SCOTIA, TORONTO RA | 2.28% | |
| Tenneco, Inc. Bonds and notes | 1.07% | |
| MPT Operating Partnership LP Bonds and notes | 1.07% | |
| TD SECURITIES (USA) LLC RA | 0.91% | |
| Carvana Co. Bonds and notes | 0.75% | |
| National Mentor Holdings, Inc. Bonds and notes | 0.75% | |
| 1261229 BC Ltd. Bonds and notes | 0.68% | |
| Moss Creek Resources Holdings, Inc. Bonds and notes | 0.64% | |
| Caesars Entertainment, Inc. Bonds and notes | 0.63% | |
| OneMain Finance Corp. Bonds and notes | 0.63% | |
| Nexstar Media, Inc. Bonds and notes | 0.60% | |
| Rithm Capital Corp. Bonds and notes | 0.58% | |
| Nissan Motor Co. Ltd. Bonds and notes | 0.58% | |
| BellRing Brands, Inc. Bonds and notes | 0.58% |
By country
United States 93.61%Canada 8.29%United Kingdom 1.81%Japan 1.79%Bermuda 1.59%By issuer
Companies 113.68%The bonds mature in 5.2 years on average (weighted by size), with an average coupon of 6.97%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $149K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.37%, +0.34%, -0.07%.
How it works
HYGV tracks the Northern Trust High Yield Value-Scored US Corporate Bond Index. Northern Trust Investments (NTI) builds the index and also runs the fund. The index starts with a broader parent index of US-dollar high-yield corporate bonds, which are bonds rated below investment grade. In the parent index, each bond is weighted by its market value. A rules-based process then picks and weights bonds to get as much exposure as possible to NTI's value score. That score looks at valuation, spread (the extra yield a bond pays over safer debt) and the issuer's solvency. A credit score covers management, profitability and solvency. A liquidity score looks at time to maturity, how much debt the issuer has outstanding and how long ago the bond was issued.
The process also limits issuer and sector weights, duration (how sensitive prices are to rate changes), low-scoring bonds and turnover. The index is rebuilt every month and had 1,132 issues as of December 31, 2025. The fund uses representative sampling, which means it holds a subset of bonds with a similar profile to the index. It held 1,011 holdings as of July 31, 2026. Portfolio turnover was 100%.
At least 80% of assets go into index securities. Up to 20% can go into cash, futures and similar holdings. The fund may lend up to one-third of its assets. It concentrates in sectors the way the index does; as of December 31, 2025, that meant Industrials.
What it really costs
- HYGV charges 0.37% a year, versus an average of 0.48% for the similar funds below (4th of 8, cheapest first).
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $38 in the first year and $479 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYGV | $38 | $121 | $212 | $479 |
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
HYGV's main draw is a high monthly income stream from junk bonds, which comes with sharp drops during market stress.
HYGV could add monthly income to a portfolio: its trailing 12-month yield was 7.66% as of October 27, 2026. The trade-off is steep, stock-like drops in a crisis. The fund launched in July 2018, so it has no 2008 record. In the 2020 COVID crash it fell 23.5% in about a month and took about 7.4 months to recover. In the 2022 bear market it fell 17% and took about 17.7 months to get back to its peak, in March 2024. Its 2022 calendar-year return was -13.01%. Anyone who needed cash from the fund in a year like that would have locked in losses. Costs are moderate: in the SEC's standard example on $10,000, expenses come to $38 after one year and $479 after 10 years. Past results don't predict future ones, and a retirement 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 and accept junk-bond credit risk; the trailing yield was 7.66% as of October 27, 2026.
- Investors drawn to a rules-based value tilt within high yield that scores bonds on valuation, spreads and solvency, for 0.37% a year.
- Those wanting shorter-maturity corporate bond exposure, with an average maturity of 5.2 years and an average coupon of 6.97% as of July 31, 2026.
Look elsewhere if
- Cost-focused investors: broad high-yield funds such as SPHY (0.05%) and USHY (0.08%) charge far less than HYGV's 0.37%.
- Anyone who can't stomach drops like the 23.5% fall in early 2020, or waiting 17.7 months to recover, as after 2022.
- Investors wanting index-like results: over five years to December 31, 2025, HYGV returned 3.92% a year versus 4.5% for the ICE BofA US High Yield Index.
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 |
|---|---|---|---|---|---|
| HYGV this fund | 5.2 yrs | 0.37% | $1.10B | +1.4% | +8.2% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
Questions investors ask
Does HYGV pay monthly dividends?
Yes. HYGV pays income every month. Over the 12 months to October 27, 2026, it paid $2.97 per share, a trailing yield of 7.66%. The money comes from interest on the junk bonds it holds, which had an average coupon of 6.97% as of July 31, 2026. Payouts can change. The prospectus warns that income may fall when interest rates drop, because the fund then has to reinvest in lower-yielding bonds.
What's the difference between HYGV and HYG?
Both hold US high-yield corporate bonds. HYG (iShares iBoxx $ High Yield Corporate Bond ETF) is far larger and charges 0.49%. HYGV charges 0.37% and picks bonds using Northern Trust's value, credit and liquidity scores. HYG returned 1.6% over one year and 8.5% a year over three years as of October 30, 2026. HYGV returned 1.4% and 8.2% as of October 27, 2026. The peer closest to HYGV's scoring approach is iShares High Yield Systematic Bond ETF (HYDB), at 0.35%.
Is HYGV good for retirement income?
It can provide high monthly income, but with real risk. The trailing yield was 7.66% as of October 27, 2026. The cost of that income shows in bad markets. The fund fell 23.5% in early 2020 and 17% in 2022, and the 2022 drop took about 17.7 months to recover. Retirees who need cash during a downturn could be selling at a loss. That's why high-yield bonds usually sit alongside safer holdings rather than replacing them.
What are HYGV's largest holdings?
As of July 31, 2026, the biggest positions were repurchase agreements, which are short-term, cash-like loans backed by collateral. They include CF Secured at about 11.1%, The Bank of Nova Scotia at 2.3% and TD Securities at 0.9%. The largest bond positions were Tenneco and MPT Operating Partnership at about 1.1% each, followed by Carvana and National Mentor Holdings at about 0.7% each. The fund held 1,011 holdings, and the top 10 made up 19.85% of assets.
How much did HYGV lose in 2022?
HYGV returned -13.01% for calendar year 2022, according to its prospectus. That was its worst year since launch. From its peak on January 3, 2022, to its low on September 27, 2022, it fell 17%. It didn't regain that peak until March 20, 2024, about 17.7 months later. Junk bonds carry two risks. Their prices fall when interest rates rise, and they also fall when investors worry more about companies defaulting.