The first new fund is the iShares U.S. Dividend and Buyback ETF, which tracks a Morningstar index of companies that are known to return a lot of capital to shareholders via dividends, share repurchases, or both. Companies are selected based only on U.S. dollar value of their combined dividend payouts and buybacks, according to the filing.
The second new fund is the iShares Broad USD High Yield Corporate Bond ETF. This ETF will track the BofA Merrill Lynch U.S. High Yield Constrained Index, which targets high-yield corporate debt (junk bonds) denominated in U.S. dollars. Currently, the market value weighted index covers some 1,888 companies. There’s also a 2% cap on each issuer, the prospectus says.
Constituents in the index are required to have risk exposure to G-10 member countries, which includes the U.S., Japan, the United Kingdom, Canada, Australia, New Zealand, Switzerland, Norway, Sweden and the countries in the eurozone.
Neither of these new filings had any mention of a ticker, expense ratio, or listing exchange, so we’ll have to wait and see on that important info when it comes out.
Blackrock’s current largest high yield bond fund, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG), was trading at $88.41 per share on Monday morning, down $0.09 (-0.10%). Year-to-date, HYG has gained 4.82%, versus a 11.72% rise in the benchmark S&P 500 index during the same period.