At a glance
IHY charges 0.4% a year, above the 0.37% average of the 7 funds most like it (the 4th cheapest of 8). It has $43.4M in assets, the 8th largest of that group; it paid 6.15% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.9% with distributions reinvested, the weakest of those 8 funds; over three years it returned +8.3% a year. At its worst it fell 23.7% in the 2020 crash (S&P 500: 33.7%) and 23.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 23 months after the lows. Its ten largest positions make up 5.3% of the fund, out of 532 in all.
The short version
VanEck International High Yield Bond ETF (IHY) is an index fund that holds below-investment-grade, or "junk," corporate bonds issued by companies outside the United States, including some in emerging markets. It pays income monthly, and its trailing 12-month yield was 6.15% as of October 27, 2026. Its 0.40% expense ratio is close to the 0.37% average of similar funds. With $43 million in net assets as of June 30, 2026, it is the smallest fund in its comparison group.
Price history
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IHY -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 | |
|---|---|---|---|---|---|---|
| IHY official prospectus, to Dec 31, 2025 | — | +12.72% | — | +1.90% | +4.77% | — |
| IHY price data to Oct 27, 2026 | -1.9% | -0.9% | +8.3% | +1.8% | +3.4% | +3.8% |
- Over the year to Oct 27, 2026, IHY returned -0.9%, 8th of 8 among similar funds.
- Its 5-year annualized return was +1.8% and its 10-year +3.4%.
- In the 2020 COVID crash it fell 23.7% and regained its old high 4.1 months after the low.
- Its worst full calendar year was 2022 (-14.3%); its best was 2025 (+13.4%).
- The deepest fall in its price history was 27.6% (Jun 9, 2021 to Oct 14, 2022), recovered by Apr 25, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.9% | — |
| 2025 | +13.4% | +12.72% |
| 2024 | +3.6% | +4.54% |
| 2023 | +12.1% | +12.20% |
| 2022 | -14.3% | -14.52% |
| 2021 | -2.8% | -2.78% |
| 2020 | +8.6% | +8.59% |
| 2019 | +12.8% | +12.75% |
| 2018 | -4.5% | -4.62% |
| 2017 | +12.5% | +11.62% |
| 2016 | +11.4% | +11.30% |
| 2015 | -3.1% | — |
| 2014 | -5.1% | — |
| 2013 | +7.2% | — |
| 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 4.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.9% over that stretch · deepest drop along the way 23.1%, back to its old high 22.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9400 | |
| 2025 | $1.1700 | +1.7% |
| 2024 | $1.1500 | +4.5% |
| 2023 | $1.1000 | +11.1% |
| 2022 | $0.9900 | -10.8% |
| 2021 | $1.1100 | -7.5% |
| 2020 | $1.2000 | -2.4% |
| 2019 | $1.2300 | +11.8% |
| 2018 | $1.1000 | -0.9% |
| 2017 | $1.1100 | -8.3% |
| 2016 | $1.2100 | -7.6% |
| 2015 | $1.3100 | -7.2% |
| 2014 | $1.4110 | -20.1% |
| 2013 | $1.7654 |
What's inside
As of Jun 30, 2026, the fund held 532 securities; the ten largest made up 5.3% of assets.
| Holding | Weight | |
|---|---|---|
| ELECTRICITE DE FRANCE SA Bonds and notes | 0.61% | |
| PETROLEOS MEXICANOS Bonds and notes | 0.59% | |
| MEDIOBANCA DI CRED FIN Bonds and notes | 0.53% | |
| TELECOM ITALIA CAPITAL Bonds and notes | 0.53% | |
| STELLANTIS NV Bonds and notes | 0.52% | |
| MUNDYS SPA Bonds and notes | 0.52% | |
| VZ VENDOR FINANCING Bonds and notes | 0.51% | |
| VMED O2 UK FINAN Bonds and notes | 0.50% | |
| INTRUM INV AND FIN Bonds and notes | 0.50% | |
| YAPI VE KREDI BANKASI AS Bonds and notes | 0.49% | |
| FIBERCOP SPA Bonds and notes | 0.48% | |
| SOFTBANK GROUP CORP Bonds and notes | 0.46% | |
| SAMARCO MINERACAO SA Bonds and notes | 0.46% | |
| SOFTBANK GROUP CORP Bonds and notes | 0.46% | |
| CFAMC III CO LTD Bonds and notes | 0.46% |
By country
France 11.26%United Kingdom 10.16%Netherlands 9.76%Luxembourg 9.17%Canada 7.96%By issuer
Companies 96.95%Other 0.27%Foreign governments 0.23%The bonds mature in 7 years on average (weighted by size), with an average coupon of 6.12%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $6.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.89%, +0.44%, -0.38%.
How it works
IHY tries to match the price and yield performance, before fees, of the ICE BofA Global ex-US Issuers High Yield Constrained Index. The index holds bonds rated below investment grade. That is the lower tier of credit ratings, given to companies seen as more likely to miss payments. Issuers can be based anywhere except the US, including emerging markets. The bonds must be in euros, US dollars, Canadian dollars or British pounds. As of December 31, 2025, the index held 1,523 bonds from 759 issuers. About 42% were Rule 144A securities, which are bonds sold privately to large institutions rather than offered to the public.
VanEck does not buy every bond in the index. It uses "sampling": it holds a subset of bonds picked to have roughly the same risk and return as the full index. At least 80% of assets must be in index securities. The fund does not try to beat the index or move to safer holdings in a downturn. As of June 30, 2026, it had 532 holdings, and the 10 largest made up only 5.3% of assets. The two largest were Electricite de France and Petroleos Mexicanos, at about 0.6% each. Portfolio turnover was 36%.
Bond prices move opposite to interest rates. With an average maturity of about 7 years, the fund's price will react to rate changes. The prospectus also warns that changes in foreign currencies against the dollar may reduce returns.
What it really costs
- IHY charges 0.4% a year, versus an average of 0.37% for the similar funds below (4th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IHY | $41 | $128 | $224 | $505 |
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 high monthly income and bonds from non-US companies, but its sharp drops and long recoveries make it better suited to a small slice of a portfolio than a core bond holding.
IHY can add high income and foreign corporate debt to a portfolio. In sell-offs, though, it has behaved more like a stock fund than a steady bond fund. It fell 23.7% in the 2020 COVID crash and recovered in about four months. In the 2022 bear market it fell 23.1% and took about 22.5 months to get back to its earlier high. Its deepest drop was 27.6%, from June 2021 to October 2022, and it did not recover until April 2025, about 30 months later. Its worst calendar year was 2022, at -14.52%. The fund launched in 2012, so it has no record from 2008. Anyone forced to sell shares in a year like 2022 would have locked in losses. The fund pays monthly, with a trailing yield of 6.15% as of October 27, 2026. Under the SEC's standard example, it costs $41 in the first year on $10,000. 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 issued by non-US companies, with a 6.15% trailing yield as of October 27, 2026.
- Investors with mostly US bonds who want issuers in France, the UK, the Netherlands, Canada and emerging markets.
- People who can sit through deep drops: its 2021–2022 decline of 27.6% took about 30 months to recover.
Look elsewhere if
- Cost-focused investors: SPDR Portfolio High Yield Bond ETF charges 0.05% and iShares Broad USD High Yield Corporate Bond ETF 0.08%, against IHY's 0.40%.
- Anyone who needs bonds to hold steady when stocks fall; IHY lost 23.7% in the 2020 crash and 14.52% in 2022.
- Investors wary of very small funds: net assets were $43 million as of June 30, 2026, after about $6.6 million of outflows over three months.
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 |
|---|---|---|---|---|---|
| IHY this fund | 7 yrs | 0.4% | $43.4M | -0.9% | +8.3% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +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% |
| ANGL VanEck Fallen Angel High Yield Bond ETF | 8.7 yrs | 0.25% | $3.05B | -0.3% | +8.2% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
Questions investors ask
Does IHY pay monthly dividends?
Yes. IHY pays income monthly. Over the 12 months to October 27, 2026, it paid about $1.27 per share, a trailing yield of 6.15%. That income comes from interest on high-yield, or "junk," bonds issued by companies outside the US. Payouts can shift from month to month as bonds mature, issuers default or currencies move. As of June 30, 2026, the portfolio's average coupon, the fixed interest rate a bond pays, was 6.12%.
What's the difference between IHY and JNK?
The main differences are geography and size, not cost. IHY's index leaves out US companies entirely, and both funds charge 0.40% a year. Among similar funds, JNK is the closest match to IHY by average maturity and issuer mix. IHY held about $43 million in net assets as of June 30, 2026, against about $7.3 billion for JNK. As of October 27, 2026, JNK returned 1.6% over one year versus -0.9% for IHY. Their three-year annualized returns were close, at 8.7% and 8.3%.
Is IHY good for retirement income?
It may suit retirees who want monthly income and can accept junk-bond swings, but neither the income nor the price is steady. The trailing yield was 6.15% as of October 27, 2026. IHY lost 14.52% in 2022, and its value fell 27.6% from June 2021 to October 2022. It then took about 30 months to recover, by April 2025. Its bonds are rated below investment grade, the cutoff for safer borrowers, so default risk is higher. Currency moves add more ups and downs.
What bonds are in IHY?
IHY holds high-yield, or "junk," corporate bonds from issuers outside the US. It tracks the ICE BofA Global ex-US Issuers High Yield Constrained Index and buys a sample of the index's bonds rather than all of them. As of June 30, 2026, it had 532 holdings, and the 10 largest made up just 5.3% of assets. The biggest were bonds from Electricite de France, Petroleos Mexicanos, Mediobanca and Telecom Italia Capital. France, the UK and the Netherlands were the largest country weights.
What is IHY's expense ratio?
IHY's expense ratio, the yearly fee taken from fund assets, is 0.40%, according to the prospectus filed April 29, 2026. The SEC's standard example assumes $10,000 invested and a 5% annual return. On that basis, total costs would be about $41 after one year, $224 after five years and $505 after 10 years. That is slightly above the 0.37% average for similar funds. JNK also charges 0.40%, while SPHY charges 0.05% and USHY charges 0.08%.