At a glance
HYGW charges 0.69% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $112.1M in assets, the 8th largest of that group; it paid 11.06% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.2% with distributions reinvested, the weakest of those 8 funds; over three years it returned +6.1% a year.
The short version
iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW) is a BlackRock fund that holds one other ETF, the iShares iBoxx $ High Yield Corporate Bond ETF, and sells one-month call options on it to earn extra income. Its trailing 12-month yield was 11.06% as of October 27, 2026, paid monthly. In return, it gives up junk-bond price gains above each month's option strike price but still takes the full losses.
Price history
The interactive chart needs JavaScript.
HYGW +3.2% 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 | |
|---|---|---|---|---|---|---|
| HYGW official prospectus, to Dec 31, 2025 | — | +6.01% | — | — | — | +5.53% |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | — | — | +3.42% |
| Cboe HYG Buy Write Index index, same period | — | +4.97% | — | — | — | +5.48% |
| HYGW price data to Oct 27, 2026 | +2.1% | +3.2% | +6.1% | — | — | +5.3% |
- Over the year to Oct 27, 2026, HYGW returned +3.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+6.2%); its best was 2023 (+7.3%).
- The deepest fall in its price history was 5.5% (Aug 25, 2022 to Sep 27, 2022), recovered by Jan 6, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.1% | — |
| 2025 | +6.2% | +6.01% |
| 2024 | +7.0% | +7.10% |
| 2023 | +7.3% | +7.30% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.3500 | |
| 2025 | $3.7500 | -3.8% |
| 2024 | $3.9000 | -27.0% |
| 2023 | $5.3400 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 99.89% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares iBoxx USD High Yield Corporate Bond ETF | 99.89% |
By country
United States 99.89%By asset type
Stocks 99.89%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $5.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.69%, +0.48%, +0.02%.
How it works
HYGW tracks the Cboe HYG BuyWrite Index, built by Cboe Global Indices. The index holds the iShares iBoxx $ High Yield Corporate Bond ETF and sells call options on it each month. As of July 31, 2026, 99.89% of the fund was in that ETF and 0.16% in cash. The underlying ETF follows the Markit iBoxx USD Liquid High Yield Index. That index holds US dollar junk bonds from developed-market companies. Each issuer needs at least $1 billion of debt outstanding, and each bond needs at least $400 million outstanding, less than 15 years' original maturity and at least a year left to run. Bonds are weighted by market value, and no issuer can be more than 3%.
A call option gives the buyer the right to buy shares at a set "strike" price. HYGW collects a fee, called a premium, for selling that right. Its calls are European-style, which means they can be exercised only on the expiration date. The strike is set close to the underlying ETF's latest closing price. On the business day before expiration, the fund buys back the expiring calls and sells new ones for the following month, so it doesn't expect to hand over shares. It never sells calls on more shares than it holds. It may skip writing calls when the premium would be very small.
The result: the fund gives up gains above the strike but takes the full losses. BlackRock doesn't try to beat the index, and portfolio turnover was 3%.
What it really costs
- HYGW charges 0.69% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.2% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $70 in the first year and $859 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYGW | $70 | $221 | $384 | $859 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- 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
HYGW is built to turn a high-yield bond fund into a larger monthly payout, giving up most price growth to do it.
HYGW could add high monthly income. Its trailing yield was 11.06% as of October 27, 2026. Much of that comes from option premiums. That income is usually taxed as ordinary income, and the prospectus warns that payouts can exceed what the fund actually earns. The fund launched in August 2022, so it has no record from 2008 or 2020 and missed most of the 2022 bear market. Its deepest drop was 5.5%, from August 25 to September 27, 2022, and it recovered by January 6, 2023, about three months later. Its weakest full year was still a gain: 6.01% in 2025. But it has never been tested in a deep credit crisis. Junk bonds can fall hard in recessions, and the options do little to cushion large losses. Costs are 0.69% a year, or $859 over 10 years in the SEC's standard $10,000 example. Past results don't predict future ones. 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 value a monthly payout, with a trailing yield of 11.06% as of October 27, 2026, more than price growth.
- Investors who already want junk-bond exposure and are willing to give up gains above each month's strike price for option premiums.
- People holding it in a tax-advantaged account, where option income taxed at ordinary rates matters less.
Look elsewhere if
- Investors who want bond prices to recover and grow; the calls cap gains while the fund still takes the full losses from junk-bond declines.
- Cost-sensitive investors: the 0.69% expense ratio is a layer on top of simply holding the underlying high-yield ETF directly.
- Anyone who wants a long track record; the fund launched in August 2022 and has never been through a recession or credit crisis.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HYGW this fund | 0.69% | $112.1M | +3.2% | +6.1% |
| 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 HYGW pay monthly dividends?
Yes. HYGW pays distributions every month. In the 12 months to October 27, 2026, it paid $3.11 per share, which is a trailing 12-month yield of 11.06%. The cash comes from two places. One is the bond interest passed through by the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), which HYGW owns. The other is the money it collects from selling call options. Both are generally taxed as ordinary income, not as lower-taxed qualified dividends. The prospectus warns that distributions may exceed the fund's income and gains.
What's the difference between HYGW and HYG?
HYGW owns HYG and sells options on it. HYG tracks the Markit iBoxx USD Liquid High Yield Index, which holds below-investment-grade ("junk") corporate bonds. HYGW tracks the Cboe HYG BuyWrite Index. As of July 31, 2026, HYGW held 99.89% of its assets in HYG. It sells one-month call options, which give the buyer any rise above a "strike" price set close to HYG's market price. The money from selling them adds income. In return, HYGW gives up gains above the strike but still takes HYG's full losses.
What is HYGW's expense ratio?
HYGW's total expense ratio is 0.69% a year, according to its prospectus filed February 23, 2026. That figure includes a 0.20% management fee. The expense ratio is the yearly cost taken out of the fund's assets. The SEC's standard example assumes $10,000 invested with a 5% yearly return. On that basis, costs add up to about $70 after one year, $221 after three, $384 after five and $859 after ten. The "buffer" ETFs in its comparison group charge 0.79% to 0.95%, but they use a different strategy and aren't close substitutes.
Is HYGW good for retirement income?
It may suit retirees who want monthly cash and can accept junk-bond risk, but the high payout needs context. The trailing yield was 11.06% as of October 27, 2026. Yet the fund's total return was 3.2% over one year and 6.1% a year over three years to that date. When payouts run ahead of total return, the share price tends to slip, so spending every distribution can leave the investment worth less over time. The fund is also small, with $112 million in net assets as of July 31, 2026.
How risky is HYGW?
Its price swings have been small so far, but its record is short. Its largest drop was 5.5%, from August 25 to September 27, 2022, and it had recovered by January 6, 2023. Its worst quarter was a 0.26% loss, in the third quarter of 2023. It launched in August 2022, so it has never been through a crash like 2008 or 2020. Junk bonds can default, and bond prices fall when interest rates rise. Selling calls also caps gains while leaving the fund fully exposed to HYG's losses.