WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index
The WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index is designed to provide exposure to the US High Yield Corporate Bond Market, while neutralizing sensitivity to increases in US interest rates. The index is a rules-based alternatively weighted index which employs a multi-step process to first identify bonds with favorable fundamental characteristics and then tilt to those which offer more attractive income potential. Offsetting short positions in US Treasuries are then constructed to neutralize interest rate sensitivity across maturities. The constituents of the index are selected and weighted on a semi-annual basis, and the interest rate hedge is rebalanced on a monthly basis to achieve the targeted duration exposure of 0.
The index draws from the US corporate bonds of public issuers domiciled in the United States. To be eligible for inclusion in the Index, debt securities must have fixed coupons with at least $500 million in par amount outstanding and a remaining maturity of at least one year. Component securities must be rated non-investment grade by at least one rating agency. The index shares the methodology of the US High Yield Corporate Bond Index and simply measures the return of the WisdomTree US High Yield Corporate Bond Index in combination with the interest rate hedge.
As of 01/22/2021
|Total Return Index Symbol||I35476|
|Exchange Index Symbol|
|Index Inception Date||02/01/2020|
|Base Index Value||100|
|Number of Components in Index||744|
|Total Return Index Closing Value||149.79|
As of 01/22/2021
|Yields to Worst||3.61|
|Average Effective Maturity||6.87|
|Average Yield to Maturity||4.38|
|Option Adjusted Spread||3.23|