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 $15 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, USHY has delivered 6.35% a year over 3 years (ranked 172nd of 236 ETFs we track) and 0.95% a year over 1 year (ranked 205th of 318 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 10.46% 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 4.44%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 0.49 is weak — 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 10.46% income yield — good for investors who want regular cash flow.
- Low volatility (4.44% 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.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.49).
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.