Is Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) a Strong ETF Right Now?

Designed to provide broad exposure to the High-Yield/Junk Bond ETFs category of the market, the Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) is a smart beta exchange traded fund launched on 06/20/2013.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $217.69 million, which makes it one of the average sized ETFs in the High-Yield/Junk Bond ETFs. PGHY seeks to match the performance of the DB Global Short Maturity High Yield Bond Index before fees and expenses.The ICE USD Global High Yield Excluding US Issuers Constrained Index comprises of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic and eurobond markets by non-U.S. issuers.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the cheaper products in the space.The fund has a 12-month trailing dividend yield of 7.14%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Taking into account individual holdings, Industrial & Commercial Bank Of China Ltd-3.20%-12-31-2079 (ICBCAS) accounts for about 1.32% of the fund's total assets, followed by Samarco Mineracao Sa-9.50%-06-30-2031 (SAMMIN) and 1011778 Bc Ulc / New Red Finance Inc-4.00%-10-15-2030 (BCULC).The top 10 holdings account for about 6.62% of total assets under management.Performance and RiskYear-to-date, the Invesco Global ex-US High Yield Corporate Bond ETF has added roughly 1.79% so far, and is up roughly 6.44% over the last 12 months (as of 06/11/2026). PGHY has traded between $19.31 $20.26 in this past 52-week period. The fund has a beta of 0.21 and standard deviation of 5.39% for the trailing three-year period, which makes PGHY a high risk choice in this particular space. With about 600 holdings, it effectively diversifies company-specific risk .AlternativesInvesco Global ex-US High Yield Corporate Bond ETF is a reasonable option for investors seeking to outperform the High-Yield/Junk Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.iShares iBoxx $ High Yield Corporate Bond ETF (HYG) tracks Markit iBoxx USD Liquid High Yield Index and the iShares Broad USD High Yield Corporate Bond ETF (USHY) tracks BofA Merrill Lynch U.S. High Yield Constrained Index. iShares iBoxx $ High Yield Corporate Bond ETF has $16.25 billion in assets, iShares Broad USD High Yield Corporate Bond ETF has $27.25 billion. HYG has an expense ratio of 0.49% and USHY changes 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the High-Yield/Junk Bond ETFsBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks