(YLD) Principal Active High Yield - Overview

The Principal Active High Yield ETF (YLD) is an actively managed fund focused on generating income through a portfolio primarily composed of non-investment-grade fixed-income instruments. Under normal market conditions, the fund allocates at least 80% of its assets to high-yield bonds and bank loans, often referred to as junk bonds. To manage liquidity and risk, the fund also maintains positions in U.S. Treasury securities, investment-grade bank loans, and preferred securities.

The high-yield sector typically consists of debt issued by companies with lower credit ratings, offering higher interest rates to compensate investors for increased default risk. Unlike traditional fixed-rate bonds, the bank loans held within this ETF often feature floating-rate structures, which can provide a hedge against rising interest rate environments. Investors can further evaluate these credit risk factors by reviewing the detailed analytics available on ValueRay.

Established in 2015, YLD operates within the small-cap ETF space with approximately $545 million in assets under management. The active management strategy allows the fund sub-advisors to tactically shift allocations between various tiers of the credit spectrum based on prevailing economic indicators and corporate fundamental analysis.