MYHB delivers high-yield corporate bonds that mature around 2028, functioning like a diversified bond ladder in a single ETF. This target-maturity approach lets investors lock in today's yields while knowing exactly when their principal comes due.
How It Works
The fund holds junk bonds maturing between 2027 and 2029, creating a defined endpoint where it liquidates and returns cash to shareholders. Unlike traditional high-yield funds that perpetually roll into new bonds, MYHB's holdings naturally shorten in duration as 2028 approaches. The portfolio likely holds 100-300 bonds weighted by market value, with monthly distributions from the coupon payments.
Key Features
- Zero expense ratio makes it cheaper than buying individual bonds through most brokers
- Known maturity date eliminates interest rate guessing games after 2028
- Built-in diversification across issuers reduces single-company default impact
Risks
- Default risk could eat 3-5% of portfolio value in a recession as weaker companies fail
- Mark-to-market losses of 10-15% possible if rates spike before maturity
- Low 1.18% yield suggests the fund just launched and hasn't accumulated full coupon payments yet
Who Should Own This
Perfect for investors who need money in 2028 — think college tuition or a planned retirement expense — and want more yield than Treasuries without the complexity of building their own bond ladder. Also works for anyone betting that high-yield spreads are too wide and will tighten as these bonds approach maturity.