High-yield bond ETFs hold corporate bonds rated below investment grade. They pay more than Treasuries and investment-grade bonds because the risk of default is higher. If you searched for "high yield ETFs" and meant dividend stocks, see our high-yield ETF list.
Updated October 31, 2026 · fund data as of October 30, 2026
| Ticker | Name | Yield | Expense Ratio | 1Y Return | 3Y Return | 5Y Return |
|---|---|---|---|---|---|---|
| SPHY | SPDR Portfolio High Yield Bond ETF | 7.38% | 0.05% | +1.5% | +8.1% | +3.8% |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | 7.13% | 0.08% | +1.6% | +8.1% | +3.6% |
| ANGL | VanEck Fallen Angel High Yield Bond ETF | 6.90% | 0.25% | +0.3% | +7.5% | +2.3% |
| JNK | SPDR Bloomberg High Yield Bond ETF | 6.81% | 0.40% | +1.3% | +7.8% | +3.0% |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | 6.07% | 0.49% | +1.1% | +7.7% | +3.2% |
Yield is trailing 12-month distributions divided by the latest price, calculated the same way for every fund, as of October 30, 2026. Distributions, prices, and fees change; confirm with the issuer before investing.
Companies rated BB or lower pay more to borrow because lenders may not get their money back. A fund's yield reflects that risk. Over a full cycle, some of the income is offset by defaults and downgrades, so total return is lower than the headline yield suggests. Check the return columns on each fund page.
Investment-grade bonds often rise when stocks fall, because investors seek safety. High-yield bonds do not reliably do that: in recessions, default fears hit them alongside stocks. Treat them as income holdings with stock-like risk, not as the defensive part of a portfolio. For stability, see BND or SGOV.
When a fund yields around 7%, a fee difference looks small, but it is taken every year regardless of returns. HYG charges 0.49% and SPHY charges 0.05%. On $100,000 that gap is about $440 a year.
For long-term holders, the lowest-cost broad funds, SPHY and USHY, are hard to beat. HYG and JNK are better for active trading. See HYG vs JNK.
No. They are diversified against single-company defaults, but they can lose 10–20% or more in a recession.
Yes. Almost all of them pay interest every month.
Often, yes. The interest is taxed as ordinary income, so a high yield loses more to tax in a taxable account.