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Is WisdomTree U.S. High Yield Corporate Bond ETF (QHY) a Strong ETF Right Now?
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A smart beta exchange traded fund, the WisdomTree U.S. High Yield Corporate Bond ETF (QHY - Free Report) debuted on 04/27/2016, and offers broad exposure to the High-Yield/Junk Bond ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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
The fund is managed by Wisdomtree, and has been able to amass over $238.68 million, which makes it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. QHY seeks to match the performance of the WISDOMTREE US HIGH YIELD CORP BOND INDEX before fees and expenses.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for QHY are 0.38%, which makes it on par with most peer products in the space.
QHY's 12-month trailing dividend yield is 6.26%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Us Dollar accounts for about 50.62% of total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Wulf Compute Llc 7.75% 10/15/2030.
The top 10 holdings account for about 104.36% of total assets under management.
Performance and Risk
So far this year, QHY return is roughly 0.87%, and is up about 7.15% in the last one year (as of 05/21/2026). During this past 52-week period, the fund has traded between $44.96 and $46.89.
QHY has a beta of 0.42 and standard deviation of 4.92% for the trailing three-year period. With about 508 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 $16.79 billion in assets, iShares Broad USD High Yield Corporate Bond ETF has $26.35 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?
A smart beta exchange traded fund, the WisdomTree U.S. High Yield Corporate Bond ETF (QHY - Free Report) debuted on 04/27/2016, and offers broad exposure to the High-Yield/Junk Bond ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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
The fund is managed by Wisdomtree, and has been able to amass over $238.68 million, which makes it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. QHY seeks to match the performance of the WISDOMTREE US HIGH YIELD CORP BOND INDEX before fees and expenses.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for QHY are 0.38%, which makes it on par with most peer products in the space.
QHY's 12-month trailing dividend yield is 6.26%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Us Dollar accounts for about 50.62% of total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Wulf Compute Llc 7.75% 10/15/2030.
The top 10 holdings account for about 104.36% of total assets under management.
Performance and Risk
So far this year, QHY return is roughly 0.87%, and is up about 7.15% in the last one year (as of 05/21/2026). During this past 52-week period, the fund has traded between $44.96 and $46.89.
QHY has a beta of 0.42 and standard deviation of 4.92% for the trailing three-year period. With about 508 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 $16.79 billion in assets, iShares Broad USD High Yield Corporate Bond ETF has $26.35 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.