Is HYSA the best option ?

The BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA) is a viable option for investors seeking exposure to the high-yield bond sector, but whether it is the "best" option depends on individual investment goals, risk tolerance, and market conditions. Here's a comprehensive analysis to help you decide: 1. **Performance Track Record**: HYSA has generated a total return of 6.06% over the past year, including dividends. The fund's average annual return since inception has been 9.07%. This performance is respectable, but it may not be the highest among other high-yield bond ETFs. 2. **Sector Rotation Strategy**: HYSA employs a sector rotation strategy, which can potentially capitalize on differences in yield and credit quality across various sectors. This approach may enhance returns, but it also introduces additional risk and complexity compared to a passive high-yield bond index fund. 3. **Expense Ratio and Fees**: The expense ratio for HYSA is 0.55%, which is relatively low compared to some actively managed funds. However, it is higher than the passive index fund option, the PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS), which has an expense ratio of 0.61%. HYSA Issuer, Expense Ratio, Benchmark, Management Style, Leverage Ratio,Dividend Frequency |code|etf code|etf name|Last Price|Last Change|Issuer|Expense Ratio|Benchmark|Management Style|Leverage Ratio|Dividend Frequency|market_code| |---|---|---|---|---|---|---|---|---|---|---|---| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|15.13|-0.369417|Bondbloxx Investment Management LLC|0.5499999999999999|ICE BofA US Cash Pay High Yield Constrained Index|Passive|1|Monthly|169| 4. **Assets Under Management (AUM) and Liquidity**: HYSA has an AUM of $31.32 million and 2.05 million shares outstanding, with an average daily trading volume of 6,369.27. While this indicates reasonable liquidity, larger investors might find the fund's size insufficient compared to other high-yield bond ETFs. |code|Ticker|Name|Outstanding Share|Date|Assets Under Management|Interval Trading Volume|market_code| |---|---|---|---|---|---|---|---| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240902-20250902||2633513|169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240903|2.7570812E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240904|2.7689809E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240905|2.7729609E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240906|2.7703105E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240909|2.7712422E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240910|2.7712422E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240911|2.776958E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240912|2.776815E7||169| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|2050000|20240913|2.7855511E7||169| 5. **Sector Concentration**: HYSA's asset weight breakdown shows a 100% concentration in the communication services and financial services sectors. This lack of diversification could be a concern for investors seeking broader exposure or those who believe sector rotation strategies may not consistently outperform. |code|Ticker|Name|market_code| |---|---|---|---| |HYSA|HYSA.P|BondBloxx USD High Yield Bond Sector Rotation ETF|169| 6. **Dividend Frequency and Yield**: HYSA distributes dividends monthly, with a recent ex-dividend date on September 2, 2025, and a payable date on September 5, 2025. The dividend yield is approximately 6.73%, which is competitive within the high-yield bond space. 7. **Market Conditions and Strategy Alignment**: Current market conditions, including expected Fed rate cuts and sector rotation trends, may align with HYSA's investment strategy. However, investors should consider how these conditions might change over their investment horizon. In conclusion, while HYSA offers a sector rotation strategy and a reasonable yield, it may not be the "best" option for all investors. Those prioritizing low fees, broad sector exposure, and passive management may prefer the PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS). Investors should carefully evaluate their investment objectives, risk tolerance, and the current market environment before making a decision.