As interest rates remain elevated and market swings continue, income-focused investors are increasingly looking for ETFs that can provide steady monthly payouts and broader diversification. BlackRock’s (BLK) high-yield iShares ETFs continue to attract attention, with funds such as the iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW), iShares US & Intl High Yield Corp Bond ETF (GHYG), and iShares Interest Rate Hedged High Yield Bond ETF (HYGH) offering strong income potential in 2026.
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Let’s take a closer look at these ETFs.
iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW)
The iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW) gives investors exposure to the high-yield corporate bond market while using a covered-call strategy to generate additional income. The fund mainly invests in high-yield bond ETFs and sells call options against those holdings, helping increase monthly payouts through options income.
That approach may appeal to investors seeking very high passive income, although it can limit upside during strong market rallies. Because the ETF combines bond income with options income, its yield is much higher than that of many traditional bond funds. However, the strategy may also lead to more volatility during sharp moves in credit markets.
HYGW currently offers a dividend yield of about 12.05%. The fund manages roughly $106.87 million in assets and carries a 0.69% expense ratio.
iShares US & Intl High Yield Corp Bond ETF (GHYG)
The iShares US & Intl High Yield Corp Bond ETF (GHYG) provides exposure to both U.S. and international high-yield corporate bonds. The ETF invests in below-investment-grade debt issued by companies across developed and emerging markets, giving investors broader income exposure beyond the U.S. bond market.
The fund follows an index-based strategy and holds bonds from multiple sectors and regions, helping reduce reliance on any single market or industry. For investors seeking global diversification along with higher income potential, GHYG offers a broader approach to high-yield investing.
GHYG currently offers a dividend yield of around 6.23%. The ETF manages about $198.38 million in assets and has an expense ratio of 0.40%.
iShares Interest Rate Hedged High Yield Bond ETF (HYGH)
The iShares Interest Rate Hedged High Yield Bond ETF (HYGH) is designed for investors who want exposure to high-yield corporate bonds while reducing sensitivity to rising interest rates. The ETF combines a portfolio of below-investment-grade corporate bonds with interest-rate hedging strategies that aim to offset the impact of Treasury rate movements.
That approach may appeal to investors concerned that higher interest rates could pressure traditional bond prices. At the same time, the fund still provides access to the higher income potential typically associated with the junk bond market.
HYGH currently offers a dividend yield of about 6.66%. The ETF manages roughly $512.48 million in assets and carries a 0.52% expense ratio.
