Top 10 U.S. high yield bond ETFs to watch in 2026

High yield corporate bonds are issued by companies rated below investment grade – they carry higher default risk than investment-grade debt and pay higher interest rates as a result. The ten funds in this list take different approaches to that market: some track broad high yield bond indices, while others – like Invesco Senior Loan ETF ($BKLN) and State Street SPDR Blackstone Senior Loan ETF ($SRLN) – hold floating-rate bank loans instead, with annual fees running from 0.05% to 0.86%.

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in US$. Data updated as of 29 September 2026.

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1. iShares Broad USD High Yield Corporate Bond ETF ($USHY)

iShares Broad USD High Yield Corporate Bond ETF (USHY) share price over the last year: started at US$37.80, ended at US$35.78, a change of −5.3%. Range over the period: high US$37.80, low US$35.78. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$35.78 · Daily: -0.2% · AUM: US$26.21B · MER: 0.08%

iShares Broad USD High Yield Corporate Bond ETF ($USHY) is designed to track the BofA Merrill Lynch U.S. High Yield Constrained Index. That index covers dollar-denominated bonds issued by companies rated below investment grade and sold in the United States.

The fund aims to hold at least 90% of its assets in the index's actual component securities rather than using derivatives to replicate the return. That approach means the portfolio moves in step with the underlying bonds as closely as the mechanics of bond markets allow. High yield bonds carry meaningful default risk, and the fund's value can fall if credit conditions deteriorate or borrowers struggle to repay.

2. iShares iBoxx $ High Yield Corporate Bond ETF ($HYG)

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) share price over the last year: started at US$81.22, ended at US$77.36, a change of −4.8%. Range over the period: high US$81.28, low US$77.36. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$77.36 · Daily: -0.2% · AUM: US$16.54B · MER: 0.49%

iShares iBoxx $ High Yield Corporate Bond ETF ($HYG) is designed to track the Markit iBoxx USD Liquid High Yield Index, a benchmark made up of US dollar-denominated bonds issued by companies rated below investment grade. That below-investment-grade classification means the issuers carry a higher likelihood of default than their investment-grade counterparts, and the bonds pay higher interest rates to reflect that.

$HYG holds at least 90% of its assets in the securities that make up the index. It may put up to 10% into certain futures contracts, giving the fund some flexibility in how it maintains exposure to the benchmark. The index itself focuses on liquid bonds, meaning it targets issues that trade more actively in the market rather than harder-to-sell debt.

The result is a fund that aims to give broad, index-level access to the US high yield bond market in a single holding. As with any high yield exposure, the credit risk here is real – lower-rated companies default more often than investment-grade issuers, and that risk sits inside the portfolio.

3. iShares 0-5 Year High Yield Corporate Bond ETF ($SHYG)

iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) share price over the last year: started at US$43.34, ended at US$41.31, a change of −4.7%. Range over the period: high US$43.34, low US$41.31. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$41.31 · Daily: -0.10% · AUM: US$7.63B · MER: 0.29%

iShares 0-5 Year High Yield Corporate Bond ETF ($SHYG) aims to track the Markit iBoxx USD Liquid High Yield 0-5 Index, which covers US dollar-denominated high yield corporate bonds with less than five years until maturity. The short-maturity focus means the portfolio holds bonds closer to their repayment date compared to funds that hold debt across the full maturity spectrum.

Because these bonds are nearer the end of their term, they tend to have less sensitivity to interest rate shifts than longer-dated high yield debt. The fund holds bonds rated below investment grade, so credit risk – the chance a borrower can't repay – remains a real factor to weigh.

4. State Street SPDR Bloomberg High Yield Bond ETF ($JNK)

State Street SPDR Bloomberg High Yield Bond ETF (JNK) share price over the last year: started at US$98.06, ended at US$92.91, a change of −5.3%. Range over the period: high US$98.06, low US$92.91. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$92.91 · Daily: -0.3% · AUM: US$6.65B · MER: 0.40%

State Street SPDR Bloomberg High Yield Bond ETF ($JNK) aims to match the price and yield performance of a benchmark covering the U.S. high yield corporate bond market. The portfolio is passively constructed, following the index's composition rather than making active credit selections across individual issuers.

The fund's ticker is a straightforward nod to 'junk bonds' – the informal term for below-investment-grade debt that the underlying index tracks. $JNK holds a broad cross-section of that market, giving the portfolio exposure to the higher-rate, higher-risk end of the corporate bond universe.

5. Invesco Senior Loan ETF ($BKLN)

Invesco Senior Loan ETF (BKLN) share price over the last year: started at US$20.91, ended at US$20.46, a change of −2.2%. Range over the period: high US$21.06, low US$20.21. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$20.46 · Daily: -0.05% · AUM: US$6.58B · MER: 0.63%

Rather than tracking a high yield bond index, Invesco Senior Loan ETF ($BKLN) aims to follow the S&P/LSTA U.S. Leveraged Loan 100 Index, which covers 100 of the largest leveraged loans in the U.S. market. The fund puts at least 80% of its assets into bank loans. Bank loans carry floating interest rates, meaning the rate resets as benchmark rates move rather than staying fixed at the time of issue.

The borrowers behind these loans are typically companies with below-investment-grade credit ratings, so $BKLN operates in similar credit territory to the bond-focused funds in this list. The key structural difference is the loan format itself – bank loans are senior in a company's capital structure, meaning they rank ahead of bonds in the event of default.

6. State Street SPDR Blackstone Senior Loan ETF ($SRLN)

State Street SPDR Blackstone Senior Loan ETF (SRLN) share price over the last year: started at US$41.57, ended at US$40.46, a change of −2.7%. Range over the period: high US$41.58, low US$39.60. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$40.46 · Daily: 0.0% · AUM: US$5.60B · MER: 0.70%

State Street SPDR Blackstone Senior Loan ETF ($SRLN) takes a different approach to the others in this list: rather than tracking an index, it aims to outperform the Morningstar LSTA US Leveraged Loan Index. The fund does that by investing at least 80% of its assets in senior loans – specifically first lien senior secured floating-rate bank loans.

Because these loans sit at the top of a borrower's capital structure, they have a higher claim on assets than subordinated debt in a default scenario. The borrowers are typically below investment grade, so the fund still carries default and credit risk — seniority affects recovery, not the likelihood of default. The floating-rate structure means the interest payments on the underlying loans adjust with prevailing rates, unlike fixed-coupon bonds.

7. State Street SPDR Bloomberg Short Term High Yield Bond ETF ($SJNK)

State Street SPDR Bloomberg Short Term High Yield Bond ETF (SJNK) share price over the last year: started at US$25.62, ended at US$24.30, a change of −5.2%. Range over the period: high US$25.62, low US$24.30. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$24.30 · Daily: -0.2% · AUM: US$4.58B · MER: 0.40%

The Bloomberg US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index concentrates on the shorter end of the US high yield market – bonds with remaining maturities of up to five years that pay cash interest rather than deferring it. State Street SPDR Bloomberg Short Term High Yield Bond ETF ($SJNK) is designed to track that benchmark, with a 2% cap on any single issuer built into the index construction. Rather than holding every security in the index, $SJNK uses a sampling approach, selecting a representative subset of bonds to approximate the index's overall characteristics. As a high yield fund, its holdings are below investment grade, so it carries default and credit risk.

8. Xtrackers USD High Yield Corporate Bond ETF ($HYLB)

Xtrackers USD High Yield Corporate Bond ETF (HYLB) share price over the last year: started at US$37.12, ended at US$35.29, a change of −4.9%. Range over the period: high US$37.14, low US$35.29. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$35.29 · Daily: -0.2% · AUM: US$3.22B · MER: 0.05%

Xtrackers USD High Yield Corporate Bond ETF ($HYLB) is designed to track the Solactive USD High Yield Corporates Total Market Index, a benchmark covering U.S. dollar-denominated bonds issued by companies rated below investment grade. The fund aims to hold at least 80% of its net assets in those bonds directly, giving the portfolio broad exposure across the high yield market rather than concentrating on a specific maturity or sector slice.

High yield bonds carry meaningful default risk – companies in this part of the credit market pay higher interest rates precisely because their debt is considered speculative. That trade-off between yield and risk is baked into the index $HYLB is intended to track.

9. VanEck Fallen Angel High Yield Bond ETF ($ANGL)

VanEck Fallen Angel High Yield Bond ETF (ANGL) share price over the last year: started at US$29.70, ended at US$27.92, a change of −6.0%. Range over the period: high US$29.75, low US$27.92. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$27.92 · Daily: -0.3% · AUM: US$3.07B · MER: 0.25%

A fallen angel bond starts out rated investment grade and gets cut to below investment grade over time. VanEck Fallen Angel High Yield Bond ETF ($ANGL) aims to replicate the BofA Merrill Lynch US Fallen Angel High Yield Index, which is built entirely from that type of US dollar-denominated corporate debt.

To qualify for the index, a bond needs to have been investment grade at issuance before being downgraded below that threshold. That entry criterion sets this approach apart from broader high yield benchmarks, which can include debt issued directly as below-investment-grade. $ANGL is passively structured, seeking to replicate index performance as closely as possible rather than actively selecting individual bonds.

10. First Trust Senior Loan Fund ($FTSL)

First Trust Senior Loan Fund (FTSL) share price over the last year: started at US$45.86, ended at US$44.63, a change of −2.7%. Range over the period: high US$46.09, low US$44.51. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$44.63 · Daily: 0.1% · AUM: US$2.43B · MER: 0.86%

Senior floating rate bank loans occupy a specific tier in corporate debt: they carry first claim on a borrower's assets ahead of other creditors. First Trust Senior Loan Fund ($FTSL) concentrates on this corner of the market, with the fund's mandate requiring at least 80% of its net assets to be held in first lien senior loans.

The floating-rate structure means loan interest payments reset periodically against a reference rate, rather than being fixed at issuance. $FTSL is actively managed and aims to outperform both its primary and secondary benchmarks through loan selection, with high current income as its primary objective and capital preservation as its secondary one. Because these loans are extended to corporate borrowers in the high yield segment, default risk among borrowers is a material consideration for the fund.

Common questions

How do I invest in U.S. high yield bond ETFs in New Zealand?

All ten funds in this list trade on U.S. exchanges, so you'll need a share trading platform that provides access to U.S. markets. You buy them the same way you'd buy any U.S.-listed security – search the ticker, place an order during U.S. market hours, and the units settle in your account.

What are the key risks of U.S. high yield bond ETFs?

Some of the key risks include credit risk – high yield bonds are issued by companies rated below investment grade, so the likelihood of default or missed payments is higher than with investment-grade debt. Interest rate movements affect bond prices, and liquidity can thin out during periods of market stress, making it harder to trade at expected prices. Because these funds hold USD-denominated assets, movements between the NZD and USD affect what your investment is worth when converted back to New Zealand dollars.

How do high yield bond ETFs and senior loan funds differ?

High yield bond ETFs hold corporate bonds – fixed-term debt with a set coupon – while senior loan funds invest in floating-rate bank loans that rank higher in a company's capital structure. The floating rate means senior loans tend to be less sensitive to interest rate movements than fixed-rate bonds, but loans generally trade less freely than bonds, which can affect how easily a fund can buy or sell them. Both categories hold exposure to sub-investment-grade borrowers, so underlying credit risk is present in each.

What are fallen angel bonds?

Fallen angel bonds are corporate bonds that held investment-grade ratings at issuance but were later downgraded to below investment grade. One fund in this list – $ANGL – tracks an index made up exclusively of these bonds, rather than the broader high yield market. They carry the same general credit risk as other high yield bonds, since they're rated below investment grade at the time of holding.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

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