As geopolitical risks continue to impact global markets, passive investors can consider adding bond exchange-traded funds (ETFs) to their portfolios to earn a steady stream of income. Bond ETFs are preferred because they provide investors with consistent income and the benefits of diversification at low cost.
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Here, we will look at three bond ETFs offering more than 6% yields: SPDR Portfolio High Yield Bond ETF (SPHY), iShares US & Intl High Yield Corp Bond ETF (GHYG), and Goldman Sachs Access High Yield Corporate Bond ETF (GHYB).
TipRanks’ ETF Comparison Tool gives a snapshot of these ETFs across key metrics.
SPDR Portfolio High Yield Bond ETF (SPHY)
The SPHY ETF tracks the ICE BofA US High Yield Index and provides exposure to high-yield bonds rated below investment grade (commonly referred to as junk bonds). It comprises high-yield bonds across a broad range of maturities, allowing investors to benefit from varying interest rate environments.
Notably, the SPHY ETF has paid about $1.704 per share in dividends over the past year. It offers a dividend yield of 7.27%.
iShares US & Intl High Yield Corp Bond ETF (GHYG)
The GHYG ETF tracks the Markit iBoxx Global Developed Markets High Yield Index and provides exposure to U.S. dollar-, Euro-, British Pound Sterling-, and Canadian dollar-denominated high-yield corporate bonds. It is suitable for investors who are aware of the risks associated with high-yield bonds but seek to earn high income by capitalizing on global economic opportunities and managing risk through geographic diversification.
The GHYG ETF has paid about $2.824 per share in dividends over the past year. It offers a dividend yield of 6.2%.
Goldman Sachs Access High Yield Corporate Bond ETF (GHYB)
The GHYB ETF tracks the FTSE Goldman Sachs High Yield Corporate Bond Index and provides exposure to U.S. dollar-denominated, high-yield corporate bonds. It comprises bonds with a wide range of maturities, enabling investors to capture diverse income opportunities.
With dividends of about $3.074 per share paid over the past year, the GHYB ETF offers a dividend yield of 6.85%.
