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Is WisdomTree U.S. High Yield Corporate Bond ETF (QHY) a Strong ETF Right Now?
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The WisdomTree U.S. High Yield Corporate Bond ETF (QHY - Free Report) was launched on 04/27/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the High-Yield/Junk Bond ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $209.84 million, this makes it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. QHY is managed by Wisdomtree. QHY, before fees and expenses, seeks to match the performance of the WISDOMTREE US HIGH YIELD CORP BOND INDEX.
The WisdomTree U.S. High Yield Corporate Bond Index is a rule-based alternatively weighted Index designed to capture the performance of selected issuers in the U.S. high yield corporate bond market that are deemed to have attractive fundamental and income characteristics.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.38% for QHY, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 6.23%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Dreyfus Trsy Oblig Cash Mgmt Cl Insaccounts for about 26.58% of the fund's total assets, followed by Us Dollar and Ngl Enrgy Op/fin Corp 8.375% 2/15/2032.
The top 10 holdings account for about 52.4% of total assets under management.
Performance and Risk
The ETF return is roughly 0.47% and is up about 9.11% so far this year and in the past one year (as of 01/16/2026), respectively. QHY has traded between $43.48 and $46.89 during this last 52-week period.
The fund has a beta of 0.45 and standard deviation of 5.00% for the trailing three-year period. With about 445 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. High Yield Corporate Bond ETF is a reasonable option for investors seeking to outperform the High-Yield/Junk Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) tracks Markit iBoxx USD Liquid High Yield Index and the iShares Broad USD High Yield Corporate Bond ETF (USHY) tracks BofA Merrill Lynch U.S. High Yield Constrained Index. iShares iBoxx $ High Yield Corporate Bond ETF has $18.8 billion in assets, iShares Broad USD High Yield Corporate Bond ETF has $25.7 billion. HYG has an expense ratio of 0.49% and USHY changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the High-Yield/Junk Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree U.S. High Yield Corporate Bond ETF (QHY) a Strong ETF Right Now?
The WisdomTree U.S. High Yield Corporate Bond ETF (QHY - Free Report) was launched on 04/27/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the High-Yield/Junk Bond ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $209.84 million, this makes it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. QHY is managed by Wisdomtree. QHY, before fees and expenses, seeks to match the performance of the WISDOMTREE US HIGH YIELD CORP BOND INDEX.
The WisdomTree U.S. High Yield Corporate Bond Index is a rule-based alternatively weighted Index designed to capture the performance of selected issuers in the U.S. high yield corporate bond market that are deemed to have attractive fundamental and income characteristics.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.38% for QHY, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 6.23%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Dreyfus Trsy Oblig Cash Mgmt Cl Insaccounts for about 26.58% of the fund's total assets, followed by Us Dollar and Ngl Enrgy Op/fin Corp 8.375% 2/15/2032.
The top 10 holdings account for about 52.4% of total assets under management.
Performance and Risk
The ETF return is roughly 0.47% and is up about 9.11% so far this year and in the past one year (as of 01/16/2026), respectively. QHY has traded between $43.48 and $46.89 during this last 52-week period.
The fund has a beta of 0.45 and standard deviation of 5.00% for the trailing three-year period. With about 445 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. High Yield Corporate Bond ETF is a reasonable option for investors seeking to outperform the High-Yield/Junk Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) tracks Markit iBoxx USD Liquid High Yield Index and the iShares Broad USD High Yield Corporate Bond ETF (USHY) tracks BofA Merrill Lynch U.S. High Yield Constrained Index. iShares iBoxx $ High Yield Corporate Bond ETF has $18.8 billion in assets, iShares Broad USD High Yield Corporate Bond ETF has $25.7 billion. HYG has an expense ratio of 0.49% and USHY changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the High-Yield/Junk Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.