iShares Broad USD High Yield Fund

The iShares Broad USD High Yield Fund is an exchange-traded fund designed to provide investors with broad exposure to U.S. dollar-denominated, high-yield corporate bonds. Its primary function is to track the performance of the ICE BofA US High Yield Constrained Index, which includes bonds from various industries that offer higher yields compared to investment-grade counterparts. As a high-yield fund, it typically comprises bonds from issuers with lower credit ratings, which offer higher returns in exchange for increased risk. This fund plays a crucial role in fixed-income portfolios by delivering potential for higher income than traditional bonds, making it attractive to those seeking enhanced yield opportunities in a low-interest-rate environment. It impacts sectors such as telecommunications, energy, and financial services, where issuers often seek high-yield funding. The iShares Broad USD High Yield Fund is significant in developing diversified fixed-income strategies, enabling investors to gain exposure to a broad array of below-investment-grade bonds while managing credit risk through a diversified basket of securities.