Is USHY a good ETF?
USHY is the Global X USD High Yield Bond ETF (Currency Hedged) from Global X. We classify it under Bonds and Intl. With about $14 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, USHY has delivered 6.63% a year over 3 years (ranked 158th of 226 ETFs we track) and 4.49% a year over 1 year (ranked 192nd of 308 ETFs we track).
The management fee of 0.3% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. It pays a high 11.53% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 3 years its volatility has been low (annualised standard deviation around 4.15%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 0.59 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Low-cost: a 0.3% management fee keeps more of the return in your pocket.
- High 11.53% income yield — good for investors who want regular cash flow.
- Low volatility (4.15% over 3 years) for a smoother ride.
Things to watch
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What USHY's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.