Seven funds will target industry sectors of the US high yield bond asset class including Energy; Industrials; Financial and REIT; Telecom, Media & Technology; Healthcare; Consumer Cyclicals; and Consumer Non-cyclicals
BondBloxx Investment Management launched its first product suite of 7 exchange traded funds (ETFs). The fixed income funds, which begin trading on NYSE Arca, offer precise, index-based exposure to the high yield asset class and allow investors the opportunity to diversify and manage risk to industry sector.
“Until today, fixed income investors could not execute sector-specific views in high yield bonds through ETFs. We are excited to bring the ETF benefits of efficiency, transparency, and liquidity to fixed income investors with first-to-market products that enable what we believe is a more precise portfolio construction,” said BondBloxx founder Leland Clemons.
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The funds are passively managed and track rules-based sub-indices of the ICE BofA US Cash Pay High Yield Constrained Index.2
BondBloxx US High Yield Energy Sector ETF
Ticker: XHYE
Energy sector including the exploration & production, gas distribution, oil field equipment & services, and oil refining & marketing sub-sectors
BondBloxx US High Yield Industrial Sector ETF
Ticker: XHYI
Basic materials, capital goods, transportation and services sub-sectors
BondBloxx US High Yield Financial and REIT Sector ETF
Ticker: XHYF
Banking, financial services, insurance, and REIT sub-sectors
BondBloxx US High Yield Telecom Media & Technology Sector ETF
Ticker: XHYT
Telecom, media and technology sector, including the telecommunications, communication services, technology & electronics, and media sub-sectors
BondBloxx US High Yield Healthcare Sector ETF
Ticker: XHYH
Healthcare sector, including the health facilities, health services, managed care, medical products, and pharmaceuticals sub-sectors
BondBloxx US High Yield Consumer Cyclicals Sector ETF
Ticker: XHYC
Consumer cyclicals sector, including the automotive, leisure, real estate development & management, department stores, and specialty retail sub-sectors
BondBloxx US High Yield Consumer Non-Cyclicals Sector ETF
Ticker: XHYD
Consumer non-cyclicals sector, including the consumer goods, discount stores, food & drug retail, restaurants, and utilities sub-sectors
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BondBloxx was founded by ETF industry leaders Leland Clemons, Joanna Gallegos, Elya Schwartzman, Mark Miller, Brian O’Donnell and Tony Kelly. The team has collectively built and launched over 350 ETFs at firms including BlackRock, J.P. Morgan, State Street, Northern Trust and HSBC.
“Our conversations with investors have reinforced what we already knew – there is significant demand for more targeted fixed income products,” said BondBloxx co-founder Tony Kelly. “Our initial product suites aim to create a full toolkit for high yield investors looking to implement their specific views on the market, and we anticipate extending this approach to other fixed income asset classes.”
The funds launching today have an annual expense ratio of 0.35%. BondBloxx has filed a prospectus with the SEC with proposed details of the second set of funds.
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