The iShares Broad USD High Yield Corporate Bond ETF boasts $26.7B AUM and headline yields above 7%, but deeper analysis reveals lower effective yields. USHY's portfolio is dominated by BB and B-rated bonds, with a median yield to maturity of 6.54%, notably below the weighted average YTM. Over 63% of USHY's holdings yield less than 7%; high-yield outliers (>10% YTM) represent only 6.61% of the portfolio by weight.
USHY: 7.33% On Paper, 6.6% In Reality
Source: Seeking Alpha