Should I Buy iShares High Yield Bond ETF (HYG)? Finance YouTuber Analysis

The YouTuber discusses HYG, the largest high-yield (junk) bond ETF, which pays about 6.5% per year. He explains that while it offers higher returns, it carries significantly more risk, especially during economic downturns when its value could drop by 15-25%. He advises against treating it as a 'pocket and forget it' investment.

“There are there's an ETF called HYG. It's the biggest risky company bond fund in the world. Pays about 6 and a half% per year. It's about double what you get from the government.”

The YouTuber suggests HYG as a good option for diversification and safety, particularly for dividends in specific weeks of the month. It offers a 5.5% dividend yield and provides exposure to high-yield bonds.

“but also some good options here include funds like the ishares high yield Bond ETF that's the ticker hyg with its 5.5 dividend and safety in months”

The YouTuber suggests high-yield bonds, specifically through the HYG ETF, as a way to get higher returns than other bonds with relatively low risk. He notes that the default rate is under 1% and the ETF pays a 4.4% dividend yield, having outperformed the corporate bond index by 6% over the last year.

“the best way to invest in high yield bonds is through an etf like the ishares high-yield corporate ticker hyg which pays a 4.4 dividend yield and has beaten the corporate bond index by six percent over the last year”