ETF Spotlight: PIMCO 0-5 Year High Yield Corporate Bond

ETF Trends

ETF Spotlight on the PIMCO 0-5 Year High Yield Corporate Bond Index Fund (HYS - News) , part of an ongoing series.

Assets : $313.8 million.

Objective : The 0-5 Year High Yield Corporate Bond Index Fund tries to reflect the performance of the BofA Merrill Lynch 0-5 Year High Yield Constrained Index, which is comprised of high-yield corporate bonds with a short maturity.

Holdings : Top holdings include: Repo 6.5%, Ally Financial 2.5%, Sprint Nextel 2.1%, HCA Unsec Glbl 1.8% and MGM Resorts Intl 1.5%.

What You Should Know :

  • The Pacific Investment Management Company sponsors the fund.
  • HYS has an expense ratio of 0.55%.
  • The fund has 212 holdings and the top ten make up 20.3% of the overall portfolio.
  • The ETF has an effective maturity of 2.71 years and an effective duration of 1.8 years.
  • S&P credit rating breakdown include: BBB 0.9%, BBB- 5.3%, BB+ 12.7%, BB 11.5%, BB- 14.6%, B+ 10.9%, B 8.7%, B- 14.8%, CCC+ 7.1%, CCC 5.2%, CCC- 1.2 and D 0.2%.
  • Country allocations: U.S. 84.3%, U.K. 3.2%, Canada 2.5%, Norway 2.3%, Australia 1.8%, Luxembourg 1.8%, Germany 1.1%, France 1.1% Japan 0.9%, Netherlands 0.5% and other 0.6%.
  • HYS has a dividend yield of 5.5%.
  • The fund is up 1.4% over the last month, up 0.9% of the past three months and up 4.1% year-to-date.
  • The ETF is 1.0% above its 200-day exponential moving average.

The Latest News :

  • A new Fitch Ratings report revealed that the trailing 12-month U.S. high yield default increased to 2.2% in May, the first time defaults are above 2% since October 2010, according to a press release.
  • May defaults added a combined $3.9 billion in bonds, with year-to-date defaults at $9.6 billion.
  • Nevertheless, the report also noted that a large group of high yield debt rated BB or B confirmed that U.S. corporate fundamentals still remain in healthy shape.
  • About two thirds of companies sampled had year-over-year increases in revenue and EBITDA through the first quarter.

PIMCO 0-5 Year High Yield Corporate Bond Index Fund

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For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

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