The investment seeks to track the investment results of the Markit iBoxx® USD Liquid High Yield Index (the "underlying index").
The underlying index is a rules-based index consisting of liquid U.S. dollar-denominated, high yield corporate bonds for sale in the United States, as determined by the index provider. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index.
By Jennifer Ablan and David Gaffen
NEW YORK, June 11 (Reuters) - Investors in U.S.-based funds yanked $2.6 billion from high-yield "junk" portfolios in the
week ended June 10, the most in five weeks, data from Thomson Reuters' Lipper service showed on Thursday.
The cash withdrawals stemmed from exchange-traded-fund investors pulling capital from the iShares iBoxx $ High Yield
Corporate Bond Fund, $1.06 billion, and the SPDR Barclays High Yield Bond ETF, $762 million, said Jeff Tjornehoj,
head of Americas research at Lipper. "High-yield spreads backed up 20 basis points this week,
erasing the April-May rally and that spooked investors," Tjornehoj said. After their worst two-week performance since
March, taxable bond mutual funds saw outflows of $653 million, just the second week investors have pulled money from them this
year, Tjornehoj added. Investors in U.S.-based funds pulled another $88 million
from international and global debt funds in the week ended June 10, after cash withdrawals of $257 million in the week ended
June 3, their second-biggest outflow this year, Lipper said. Prices on German Bunds have been falling and their yields
rising since hitting a low on 10-year Bund yields of 0.049 percent on April 17. Thursday, 10-year German Bund
yields were trading around 0.89 percent. Including ETF activity, equity funds reported net cash
inflows totaling $2.8 billion in the week ended June 10, with domestic funds reporting net outflows of $62 million and
non-domestic funds reporting net inflows of $2.861 billion, Lipper said.
Excluding ETF activity, equity funds reported net cash inflows totaling $850 million with domestic funds reporting net
outflows of $805 million and non-domestic funds reporting net inflows totaling $1.655 billion, Lipper added.
The following is a broad breakdown of the flows for the week, including exchange-traded funds (in $ billions):
Sector Flow Chg % Assets ($Bil) Count ($Bil) Assets
All Equity Funds 2.800 0.05 5,421.941 11,709 Domestic Equities -0.062 -0.00 3,874.887 8,410
Non-Domestic 2.861 0.18 1,547.053 3,299 Equities
All Taxable Bond -2.643 -0.11 2,341.925 6,061 Funds
All Money Market -7.230 -0.32 2,282.935 1,276 Funds
All Municipal -0.412 -0.12 344.979 1,491 Bond Funds
(Reporting By Jennifer Ablan and David Gaffen; Editing by Tom Brown)
Investors yanked $2.75 billion from funds dedicated to low-rated corporate debt, in the latest sign of nerves about economic headwinds and turbulence in global bond markets. The outflow was the largest weekly drawdown since $3.1 billion flowed out of the funds in the week ended Dec. 17, said fund tracker Lipper. Exchange-traded funds bore a significant brunt of the outflows.
Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 13 funds within its Morningstar High Yield Bond Category.
How is it determined?
A fund's Overall Morningstar Rating (TM) is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. Please see the ratings tab for more information about methodology.
Out of 13 funds
Out of 3 funds
What does it mean?
A fund's Morningstar Rating is a quantitative assessment of a fund's past performance that accounts for both risk and return, with funds earning between 1 and 5 stars. As always, this rating system is designed to be used as a first step in the fund evaluation process. A high rating alone is not sufficient basis upon which to make an investment decision.
Quarter-End Average Annual Total Returns AS OF 06/30/2015
Life as of inception date: 04/04/2007
Gross Expense Ratio: 0.50%
The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.
Independent third parties provide portfolio composition analytics to standardize calculations for consistent comparison. However, these calculations and the resulting credit quality analytics may differ from the ETF managers' methodology, which you can learn about in the Prospectus & Reports.
Credit Grade / Maturity
Credit Grade Exposure is provided by a third-party using a proprietary algorithm which considers the ratings assigned to the ETP's underlying fixed income securities by three Nationally Recognized Statistical Rating Organizations ("NRSROs"): Moody's Investors Service ("Moody's"), Standard & Poor's Rating Services ("S&P"), or Fitch, Inc. The percentages shown in the table are based on the ETP's fixed-income holdings and may not total 100% if an ETP holds non-fixed income securities such as cash, derivatives, and/or equities. If a security is rated by two or more NRSROs, then the lowest rating is assigned to the holding. If only one NRSRO rates the security, that rating is assigned to the holding. If a security is not rated by an NRSRO, the holding is classified as "Not Rated". "AAA" consists of securities having a credit rating of AAA. "Investment-Grade" consists of securities with a credit rating of AA down to BBB (or for municipal Money Market securities, a rating of SP1 and corporate money market securities, a rating of P1). "High Yield" consists of all securities whose lowest rating is below BBB (or for municipal Money Market securities, a rating of SP2 or SP3, and corporate Money Market securities, a rating of P2 or P3) that are not in default. "Default" consists of securities rated D. The resulting credit quality analytics shown may differ from the ETP Manager's methodology to determine credit quality of the ETP's fixed income securities. A link has been provided to learn more about the ETP's Managers' investment approach and credit grade analytics.
A classification of an ETFs exposure according to the maturity of the constituent debt. Maturity refers to the length of time until the principal amount of a bond must be repaid. Bonds are typically classified into the following three categories:
Short-Term (bills): maturities between one and five years; (instruments with maturities less than one year are called Money Market Instruments)
Intermediate-Term (notes): maturities between six to ten years;
Long-Term (bonds): maturities greater than ten years.
Updated daily and calculated using constituent assets (ETP's holdings) aggregated and mapped to corresponding category.
Free commission offer applies to online purchases of Fidelity ETFs and select iShares ETFs in a Fidelity brokerage account. Fidelity accounts may require minimum balances. The sale of ETFs is subject to an activity assessment fee (of between $0.01 to $0.03 per $1,000 of principal). iShares ETFs and Fidelity ETFs are subject to a short-term trading fee by Fidelity if held less than 30 days.*The chart illustrates the NAV performance of a hypothetical $10,000 investment made in the fund on 12/31/1999 or on commencement of operations (whichever is later). Figures include reinvestment of capital gains and dividends, but do not reflect the effect of any applicable sales charges or redemption fees, which would lower these figures. This chart is not intended to imply any future performance of the fund.
**The Overall Morningstar RatingTM for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
The performance data shown represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. Click on the "Performance & Risk" link to view quarter-end performance. Average annual total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated. Since ETFs are bought and sold at prices set by the market - which can result in a premium or discount to NAV- the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return).
Top basket holdings are as of the date indicated and may not be representative of the funds current or future investments.
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