FHYS vs GHYG

FHYSCFederated Hermes Short Duration High Yield ETF

GHYGBiShares US & Intl High Yield Corp Bond ETF

In short

FHYS Federated Hermes' credit desk picks this one by hand: high-yield bonds plus bank loans, duration generally kept under three years. Credit risk, dialed-down rate risk, for 0.50% net of a waiver through May 1, 2027.

GHYG Most junk-bond ETFs stop at the US border. GHYG holds high-yield corporate debt from US and overseas issuers in one wrapper, spread across roughly 1,700 bonds, with income paid monthly.

Stated mandate

FHYS The Fund seeks high current income.

GHYG The fund seeks to track an index of high-yield corporate bonds issued in the United States and abroad.

Why people hold it

• FHYS Actively managed against a BB-B, 0-5 year high yield benchmark, so the mandate leans to the shorter, higher-quality end of junk rather than deep CCC paper.federatedhermes.com
• Portfolio duration is generally held under three years by design, which mutes the rate swings that hit long-dated bond funds.federatedhermes.com
• The mandate allows bank loans, syndicated loans and CLOs alongside bonds, floating-rate corners most index high yield ETFs skip.
• Income arrives monthly, drawn from roughly 300 positions across below-investment-grade corporate debt.

• GHYG Passport included: tracks an index of high-yield corporate bonds issued in the US and abroad, while the biggest names in the category stick to USD-denominated paper.
• Roughly 1,700 bonds in the basket, so one issuer's trouble is a rounding error. That breadth is among the strongest in its high-yield peer group.
• Pays monthly, and has been running since its 2012 launch, so the record spans a full credit cycle rather than one calm stretch.

Worth knowing

• FHYS At 0.50% net of a waiver through May 1, 2027 (0.61% gross) it prices above the category median; peer SYFI charges 0.40% and HYDB 0.35%, neither waived.
• Small and lightly traded next to the category's heavyweights, so spreads can be wider. Limit orders earn their keep here.
• Short duration trims rate sensitivity, not credit risk; below-investment-grade issuers can still default or reprice quickly.

• GHYG The 0.40% fee sits right at the high-yield median, but USD-only trackers like SCYB (0.03%) and SPHY (0.05%) charge a fraction. Global reach is the line item you pay for.
• Thinly traded with a modest asset base, so bid-ask spreads tend to run wider than the household-name high-yield funds.
• This is below-investment-grade credit. Prices move with default worries, and stress in the credit market hits harder here than in a Treasury fund.

Full FHYS profile⁠

Full GHYG profile⁠