At a glance
HYZD charges 0.43% a year, below the 0.45% average of the 7 funds most like it (the 5th cheapest of 8). It has $293.9M in assets, the 8th largest of that group; it paid 6.53% of its price in distributions over the past 12 months, monthly. Over the past year it returned +5.4% with distributions reinvested, the best of those 8 funds; over three years it returned +8.7% a year. At its worst it fell 25.3% in the 2020 crash (S&P 500: 33.7%) and 8.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 6 months after the lows. Its ten largest positions make up 6.2% of the fund, out of 492 in all.
The short version
WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) holds about 490 US junk bonds, which are corporate bonds rated below investment grade. It also shorts Treasury futures to bring the portfolio's interest-rate sensitivity close to zero. Unhedged peers such as HYG and SPHY move with rates, but HYZD's returns depend mostly on corporate credit. As of October 27, 2026, it had a 6.53% trailing yield, paid monthly, and charges 0.43% a year.
Price history
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HYZD +5.4% 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 | |
|---|---|---|---|---|---|---|
| HYZD official prospectus, to Dec 31, 2024 | — | +8.96% | — | +4.57% | +4.48% | — |
| ICE Bof A Merrill Lynch 0-5 Year U.S. High Yield Constrained, Zero Duration Index/ Wisdom Tree U.S. High Yield Corporate Bond, Zero Duration Spliced Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +9.22% | — | +5.57% | +5.25% | — |
| ICE Bof A Merrill Lynch U.S. High Yield Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +8.22% | — | +4.04% | +5.08% | — |
| Index13 index, same period | — | +1.25% | — | -0.33% | +1.35% | — |
| HYZD price data to Oct 27, 2026 | +4.3% | +5.4% | +8.7% | +6.3% | +5.1% | +4.5% |
- Over the year to Oct 27, 2026, HYZD returned +5.4%, 1st of 8 among similar funds.
- Its 5-year annualized return was +6.3% and its 10-year +5.1%.
- In the 2020 COVID crash it fell 25.3% and regained its old high 10.7 months after the low.
- Its worst full calendar year was 2014 (-4.1%); its best was 2016 (+14.9%).
- The deepest fall in its price history was 25.6% (Feb 14, 2020 to Mar 24, 2020), recovered by Feb 26, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.3% | — |
| 2025 | +7.8% | — |
| 2024 | +9.5% | +8.96% |
| 2023 | +11.3% | +11.97% |
| 2022 | -2.2% | -2.34% |
| 2021 | +6.5% | +5.79% |
| 2020 | -0.5% | -0.79% |
| 2019 | +9.2% | +8.47% |
| 2018 | -2.1% | -0.72% |
| 2017 | +6.3% | +6.44% |
| 2016 | +14.9% | +14.17% |
| 2015 | -1.0% | -5.32% |
| 2014 | -4.1% | — |
| 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 25.2% over that stretch · deepest drop along the way 25.3%, back to its old high 10.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 5.3% over that stretch · deepest drop along the way 8.9%, back to its old high 6.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.1100 | |
| 2025 | $1.4000 | +2.2% |
| 2024 | $1.3700 | +5.4% |
| 2023 | $1.3000 | +18.2% |
| 2022 | $1.1000 | +17.0% |
| 2021 | $0.9400 | -17.5% |
| 2020 | $1.1400 | -10.9% |
| 2019 | $1.2800 | 0.0% |
| 2018 | $1.2800 | +7.2% |
| 2017 | $1.1935 | -1.4% |
| 2016 | $1.2100 | +26.0% |
| 2015 | $0.9600 | +8.8% |
| 2014 | $0.8824 |
What's inside
As of Aug 31, 2026, the fund held 492 securities; the ten largest made up 6.15% of assets.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 1.19% | |
| CELANESE US HOLDINGS LLC Bonds and notes | 0.65% | |
| SM ENERGY COMPANY Bonds and notes | 0.58% | |
| CAESARS ENTERTAINMENT INC Bonds and notes | 0.58% | |
| POST HOLDINGS INC Bonds and notes | 0.57% | |
| ICAHN ENTERPRISES LP / ICAHN ENTERPRISES FINANCE CORP Bonds and notes | 0.53% | |
| VIATRIS INC Bonds and notes | 0.52% | |
| CRESCENT ENERGY FINANCE LLC Bonds and notes | 0.51% | |
| CRESCENT ENERGY FINANCE LLC Bonds and notes | 0.51% | |
| SUNOCO LP Bonds and notes | 0.51% | |
| CENTENE CORP Bonds and notes | 0.50% | |
| CLEVELAND-CLIFFS INC Bonds and notes | 0.50% | |
| WULF COMPUTE LLC Bonds and notes | 0.48% | |
| LEVEL 3 FINANCING INC Bonds and notes | 0.48% | |
| CLEVELAND-CLIFFS INC Bonds and notes | 0.47% |
By country
United States 95.94%Bermuda 0.49%Jersey 0.31%Netherlands 0.18%By issuer
Companies 95.55%US Treasury 1.36%The bonds mature in 5.4 years on average (weighted by size), with an average coupon of 6.2%.
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 added a net $56.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.18%, +0.65%, +0.84%.
How it works
HYZD tracks the WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index. WisdomTree, Inc. designed the index and is also the parent company of the fund's adviser. The index has two parts. The long side holds US-dollar corporate bonds that pay fixed coupons and have at least $500 million outstanding. Each bond must have at least a year left to maturity, be rated below BBB- or Baa3, and not be in distress. Each bond is scored on its issuer's free cash flow and on the issuer's stock performance. The index drops bonds from companies whose stocks are falling sharply. It also cuts the 5% least-traded bonds in each sector. Weights then tilt toward bonds with better income relative to their default risk. No issuer can exceed 2% and no single bond 0.50% when the index rebalances.
The short side uses Treasury futures to offset duration. Duration measures how much a bond's price reacts to changes in interest rates. The goal is a total duration of about zero. As of August 31, 2026, the fund held five Treasury futures contracts, ranging from 2-year to ultra-long bond futures. Both sides rebalance monthly. The fund owns a representative sample of the index, 492 bonds as of that date. Portfolio turnover was 61%.
The design should help when Treasury yields rise sharply and hurt when they fall sharply. The hedge does nothing for credit risk, which is the risk that companies weaken or default.
What it really costs
- HYZD charges 0.43% a year, versus an average of 0.45% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $44 in the first year and $542 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYZD | $44 | $138 | $241 | $542 |
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
It offers monthly junk-bond income with little exposure to interest rates, but credit risk caused a 25% drop in 2020, so it fits as a smaller holding rather than a core bond position.
HYZD could add monthly income that barely reacts to interest rates. Its trailing yield was 6.53% as of October 27, 2026. Under the SEC's standard example, its 0.43% expense ratio costs $44 in the first year on $10,000. The trade-off is credit risk. The fund launched in December 2013, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 25.3% in about a month and took nearly 11 months to recover. Anyone forced to sell then would have locked in a deep loss. In the 2022 bear market the fund did better. It lost 2.34% for the year, and it regained its deepest drop of 8.9% in about six months. Its worst calendar year in the prospectus was 2015, a 5.32% loss. 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 seekers who want monthly payouts from junk bonds, with a 6.53% trailing yield as of October 27, 2026, and little exposure to rising Treasury rates.
- Investors who worry about rising rates and accept that the hedge will make HYZD lag unhedged funds like HYG or JNK if rates fall sharply.
- Investors adding a small credit position next to core bonds who want it spread across 492 bonds, with the top 10 at 6.15%.
Look elsewhere if
- Cost-focused investors: SPHY (0.05%) and USHY (0.08%) hold similar-maturity junk bonds for far less than 0.43%, though neither hedges interest rates.
- Anyone who can't tolerate crisis losses: the fund fell 25.6% in early 2020 and took about 11 months to recover.
- Investors who want bonds to cushion stock losses: with near-zero duration, falling rates won't lift its price, and junk bonds can fall alongside stocks.
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 |
|---|---|---|---|---|---|
| HYZD this fund | 5.4 yrs | 0.43% | $293.9M | +5.4% | +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% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
Questions investors ask
Does HYZD pay monthly dividends?
Yes. HYZD pays distributions monthly. Over the 12 months to October 27, 2026, it paid $1.46 per share, a trailing yield of 6.53%. The money comes mainly from interest on its junk bonds, which had an average coupon of 6.2% as of August 31, 2026. Payments can change from month to month as the bonds in the fund change and as defaults or rate moves affect its income.
What's the difference between HYZD and HYG?
Both own US junk bonds with an average maturity of about 5.4 years. HYG doesn't hedge interest rates, while HYZD shorts Treasury futures to bring rate sensitivity near zero. HYZD charges 0.43% a year, compared with HYG's 0.49%. Over three years their annualized returns were close: 8.7% for HYZD and 8.5% for HYG. Over one year HYZD returned 5.4%, compared with 1.6% for HYG, as of late October 2026. HYG is far larger, with $16.2 billion in net assets against HYZD's $294 million.
Is HYZD good for retirement income?
It can provide monthly income, but with real risk. The trailing yield was 6.53% as of October 27, 2026, and rising rates matter little to its price. Junk bonds still carry credit risk. HYZD fell 25.3% in the 2020 COVID crash and took nearly 11 months to recover. That makes it better suited to a smaller part of an income portfolio than to a core bond holding, especially for someone who might need to sell in a downturn.
How does HYZD hedge interest rate risk?
It sells Treasury futures short. These positions gain when Treasury yields rise, which offsets the losses its junk bonds take from rising rates. The index sizes the short positions so the fund's total duration, its sensitivity to rate changes, is about zero, and it resets them monthly. As of August 31, 2026, it used five futures contracts ranging from 2-year notes to ultra-long bonds. The hedge doesn't protect against credit losses, and it costs returns when rates fall sharply.
How has HYZD performed over 10 years?
Its long-term returns trail the broad high-yield market slightly. Through December 31, 2024, the fund returned 4.48% a year over 10 years. The unhedged ICE BofA U.S. High Yield Index returned 5.08% over the same period, before any fees. Over five years, HYZD came out ahead, at 4.57% a year against the index's 4.04%. Based on price, its 10-year annualized return was 5.1% as of October 27, 2026. Its strongest year was 2016, a 14.17% gain.