What Is USHY? iShares Broad USD High Yield Corporate Bond ETF
Last updated September 2026
Short answer
USHY is iShares Broad USD High Yield Corporate Bond ETF, an ETF that tracks a broad index of US dollar high-yield corporate bonds at a 0.08% expense ratio. USHY lends to companies rated below investment grade and passes on the interest. The 6.89% distribution looks generous next to a Treasury fund, and the gap is not a free lunch: it is the market's estimate of how many of these borrowers will fail to pay. High-yield bonds behave far more like equities than like Treasuries during a downturn, which is the single most important thing to understand before treating this as the safe part of a portfolio.
USHY is issued by iShares and tracks a broad index of US dollar high-yield corporate bonds. It charges a 0.08% expense ratio, holds approximately $28.5B in assets under management, yields about 6.89%, and launched in 2017.
High yield does not behave like other bonds
Most bond funds cushion an equity drawdown, because investors move to safety and buy government debt. High yield does the opposite. When the economy weakens, the companies borrowing here are the ones most likely to struggle, so credit spreads widen and prices fall at exactly the moment stocks are falling.
The practical implication is that USHY is closer to an equity substitute than a bond one. Adding it to a portfolio to reduce volatility generally does not work, because its correlation with equities rises precisely when you need diversification most.
What the 6.89% is compensating for
Default risk, primarily. Below-investment-grade issuers fail more often than investment-grade ones, and in a recession that failure rate rises sharply. The yield premium over Treasuries is the market pricing that expectation.
Duration risk is a smaller factor here than in an investment-grade fund. High-yield bonds tend to have shorter maturities and their prices are driven more by perceptions of creditworthiness than by the interest-rate curve.
At 0.08% the fund is cheap for the category, which matters: high-yield funds have historically charged considerably more, and in a category where the yield is the entire proposition, fees eat directly into the thing you are buying.
USHY holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of USHY |
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How do I invest in USHY?
There are three common ways to get USHY exposure. Buy shares (or fractional shares) of USHY directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so USHY sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. USHY trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is USHY a good buy?
Whether USHY is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks a broad index of US dollar high-yield corporate bonds, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is USHY a buy?
The bottom line on USHY
USHY gives you a broad index of US dollar high-yield corporate bonds exposure in one ticker at a 0.08% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on USHY
Whether USHY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is USHY a buy?
USHY yields 6.89% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see USHY dividend: yield and schedule.
New to funds like USHY? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how USHY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in USHY with AI
Connect the broker you already use and ask Walnut's AI how USHY fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is USHY?
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USHY is the iShares Broad USD High Yield Corporate Bond ETF. It holds US dollar bonds issued by companies rated below investment grade, commonly called high-yield or junk bonds. It charges 0.08%, holds about $28.5B, distributes roughly 6.89%, and launched in 2017.
Why does USHY yield almost 7%?
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Because the borrowers are rated below investment grade and some of them will not pay. The yield premium over Treasuries is the market's estimate of expected defaults plus compensation for bearing that uncertainty. A high yield in credit is a price, not a bonus.
Is USHY a safe bond fund?
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It is the least safe category of bond fund in common use. It behaves more like equity than like Treasuries in a downturn: when the economy weakens, these borrowers struggle, spreads widen, and prices fall at the same time stocks do. Treat it as a return-seeking holding rather than ballast.
Does USHY diversify an equity portfolio?
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Much less than people expect. Its correlation with equities rises during stress, which is exactly when diversification is supposed to help. Investment-grade or Treasury funds do that job; high yield does not.
What is the main risk in USHY?
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Credit, not interest rates. A recession lifts default rates among below-investment-grade issuers and widens spreads sharply. Duration risk exists but matters less here, because high-yield bonds tend to be shorter dated and are driven more by creditworthiness than by the rate curve.
Is 0.08% cheap for a high-yield fund?
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Yes, notably so. High-yield funds have historically charged considerably more, and since the yield is the entire proposition in this category, the fee comes directly out of what you are buying. A low fee matters more here than in most fund categories.
How often does USHY pay?
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Monthly, which is standard for bond funds. The distribution moves with prevailing credit spreads and portfolio turnover rather than being fixed, and it can fall if defaults rise or if the fund reinvests at lower yields.
How is USHY taxed?
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Distributions are interest income, generally taxed at ordinary rates rather than the lower qualified-dividend rates. Because the yield is high and taxed unfavourably, this is a fund that is often held inside a tax-advantaged account. This is not tax advice.
What is USHY's expense ratio?
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USHY has an expense ratio of 0.08% per year as of August 2026, charged by iShares and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $8 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track a broad index of US dollar high-yield corporate bonds before you choose.
How do I compare USHY to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. USHY's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against iShares's fund page or your broker before investing.