The Goldman Sachs Access High Yield Corporate Bond ETF (GHYB) is Goldman’s offering for investors looking to access to the riskier corner of the corporate debt market. GHYB tracks the proprietary FTSE Goldman Sachs High Yield Corporate Bond Index. The index tries to eliminate issuers that exhibit deteriorating fundamentals, like worsening operating margins and leverage.
The Goldman Sachs Access High Yield Corporate Bond ETF (GHYB) is Goldman’s offering for investors looking to access to the riskier corner of the corporate debt market. GHYB tracks the proprietary FTSE Goldman Sachs High Yield Corporate Bond Index. The index tries to eliminate issuers that exhibit deteriorating fundamentals, like worsening operating margins and leverage.
This fund is for investors looking to add income while avoiding some of the riskiest junk debt. Other ETFs have a similar goal, but use different strategies, such as the FlexShares High Yield Value-Scored Bond Index Fund (HYGV) or the WisdomTree U.S. High Yield Corporate Bond Fund (WFHY). Another variation are the “fallen angel” funds which seek to invest in downgraded securities or debt from issuers that have recently slipped below investment-grade, such as the iShares Fallen Angels USD Bond ETF (FALN) or the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL).
GHYB’s management fee is competitive, especially when compared to plain-vanilla index ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), the giants in the space. GHYB owns fewer securities than HYG — hardly surprising since GHYB is a fraction of HYG’s size. Both portfolios look similar when it comes to credit ratings and maturities. Does Goldman’s factor twist work? There’s limited performance history to go on since GSSC was launched in September 2017, but it did outperform HYG during the pandemic turmoil of the first five months of 2020.