BHYB vs HYLB

BHYBAXtrackers USD High Yield BB-B ex Financials ETF

HYLBAXtrackers USD High Yield Corporate Bond ETF

In short

BHYB High yield with two filters bolted on: no CCC-rated bonds, no financial issuers. You get the BB and B middle of the junk market, at 0.20% a year, half the typical cost in its category.

HYLB Broad-market junk bonds at index-fund pricing: 0.05% a year, a fraction of what the typical high-yield bond ETF charges, spread across roughly 1,300 issues. Running since 2016, it pays monthly.

Stated mandate

BHYB The fund uses a passive representative-sampling strategy to track its Underlying Index, investing primarily in U.S.-dollar-denominated below-investment-grade corporate bonds that meet the index's BB-to-B credit-rating range and exclude financial issuers.

HYLB The fund seeks to track, before fees and expenses, the Solactive USD High Yield Corporates Total Market Index. It uses a passive representative-sampling indexing approach.

Why people hold it

• BHYB Costs 0.20% a year against a 0.40% median for high yield bond ETFs. Cheap for a screened portfolio rather than a plain index scoop.
• The rulebook does the credit work: US dollar bonds in the BB-to-B band only, financial issuers excluded. The lowest-rated CCC tier never enters.
• Roughly 1,500 bonds held via representative sampling, with cash paid out monthly.
• Sits among the strongest builds in a crowded high yield field, backed by a multi-billion-dollar asset base.

• HYLB 0.05% expense ratio puts it at the low end of the high-yield ETF field, matching SPHY and undercutting USHY's 0.08%. Fee drag matters most where yield is the whole point.
• Total-market mandate, not a filtered slice: roughly 1,300 bonds sampled from the Solactive USD High Yield Corporates Total Market Index.
• Tracking has been tight against its stated index, and it trades actively enough to keep spreads workable. One of the cleaner implementations in the high-yield group.
• Monthly distributions, with a live record going back to a 2016 launch (through the 2020 credit shock and the 2022 rate spike).

Worth knowing

• BHYB Broad high yield costs less: SCYB at 0.03%, SPHY and Xtrackers' own HYLB at 0.05%, USHY at 0.08%. The screens carry a price.
• Skipping banks, insurers and CCC credits means the ride can diverge from broad high yield benchmarks in both directions.
• Launched in 2023, so the track record is short, and it trades at moderate volume rather than as a category workhorse.

• HYLB This is the credit-risk end of the bond market. Below-investment-grade issuers default more often, and prices can fall hard when spreads widen.
• Representative sampling means it holds a subset of the index, not every bond, so results can drift slightly from the benchmark.
• Cheap, but not the floor: SCYB runs 0.03%. HYLB is also a mid-sized fund next to the largest names in the category.

Full BHYB profile⁠

Full HYLB profile⁠