High-Yield Bond Market Resilience and Income Generation: The Strategic Value of the Goldman Sachs Access High Yield Corporate Bond ETF

The high-yield bond market has demonstrated remarkable resilience in the face of macroeconomic headwinds and policy uncertainty from 2023 to 2025. Despite initial disruptions caused by tariff announcements in early 2025, U.S. high-yield issuance rebounded to record levels by mid-year, driven by investor demand for downside protection and attractive yields [1]. This resilience is underpinned by a structural shift in the market’s credit quality: BB-rated bonds now constitute 53% of the U.S. high-yield universe, while CCC-rated securities account for just 11%—a stark contrast to the 2011 era, when BB-rated bonds made up only 43% of the market [2]. The trailing 12-month default rate as of April 2025 stood at a historically low 0.3%, further reinforcing the sector’s stability [1].

Amid this backdrop, the Goldman Sachs Access High Yield Corporate Bond ETF (GHYB) emerges as a compelling vehicle for income generation and risk-adjusted returns. Tracking the FTSE Goldman Sachs High Yield Corporate Bond Index, GHYB is designed to exclude issuers with deteriorating fundamentals, such as declining operating margins and rising leverage [3]. This selective approach aligns with the broader market’s improved credit profile while mitigating exposure to the riskiest segments of the high-yield universe. As of August 2025, the ETF’s yield to maturity stood at 6.99%, with an average duration of 3.89 years, reflecting its focus on shorter-maturity bonds that offer greater visibility on financial risks [4].

GHYB’s strategic value is further underscored by its performance during recent market stress events. During the 2020 pandemic, the ETF outperformed its peers, including the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), in the first five months of the year. This resilience was attributed to its index’s emphasis on higher-quality credits and its avoidance of the most speculative segments of the market [5]. For instance, while the broader high-yield market declined by 0.8% year-to-date in the first half of 2025, GHYB recorded a 2.2% return, highlighting its ability to navigate volatility [6].

However, the ETF is not without risks. High-yield bonds remain sensitive to macroeconomic shocks and interest rate hikes, particularly given their historically short durations. For example, the European high-yield market, while resilient, faces challenges from elevated refinancing costs in an environment of persistently high rates [7]. GHYB’s exposure to U.S. corporate debt, though diversified across 655 holdings, still carries the inherent risks of below-investment-grade securities. Investors must also consider the potential for spread widening during periods of policy uncertainty, such as the U.S. Federal Reserve’s tightening cycle in 2023–2024 [8].

Despite these risks, GHYB’s low expense ratio of 0.15% and its focus on income generation make it an attractive option for investors seeking to capitalize on the high-yield market’s resilience. The fund’s yield to maturity of 6.99% as of August 2025 compares favorably to the 7.07% yield of the broader U.S. high-yield market, while its average duration of 3.89 years provides a buffer against interest rate volatility [4]. Moreover, the ETF’s alignment with the FTSE index’s exclusion criteria ensures a portfolio that is less susceptible to defaults, as evidenced by the sector’s 0.3% default rate [1].

In conclusion, the high-yield bond market’s structural improvements and GHYB’s disciplined investment approach position the ETF as a strategic tool for income-focused investors. While macroeconomic and policy risks persist, the combination of attractive yields, improved credit quality, and historical resilience during crises like the 2020 pandemic underscores GHYB’s value proposition. As the market continues to adapt to a “new normal” of elevated rates and geopolitical uncertainty, GHYB offers a balanced pathway to capitalize on the sector’s strengths while mitigating its vulnerabilities.

Source:
[1] Resilient US high yield dealmakers adjust to market's “new normal” [https://debtexplorer.whitecase.com/leveraged-finance-commentary/resilient-us-high-yield-dealmakers-adjust-to-markets-new-normal]
[2] The High Yield Outlook for 2025 | Natixis Investment Managers [https://www.im.natixis.com/en-latam/insights/fixed-income/2024/the-high-yield-outlook-for-2025]
[3] GHYB tracks the proprietary FTSE Goldman Sachs High Yield Corporate Bond Index [https://etfdb.com/etf/GHYB/]
[4] GHYB Goldman Sachs Access High Yield Corporate Bond ETF [https://am.gs.com/en-us/advisors/funds/detail/PV102746/381430453/goldman-sachs-access-high-yield-corporate-bond-etf]
[5] GHYB outperformed peers during the 2020 pandemic [https://etfdb.com/etf/GHYB/]
[6] High Yield Monthly Update - August 2025 [https://www.nomura-asset.co.uk/insight/high-yield-monthly-update/]
[7] The High Yield Outlook for 2025 | Natixis Investment Managers [https://www.im.natixis.com/en-latam/insights/fixed-income/2024/the-high-yield-outlook-for-2025]
[8] Challenges to the resilience of US corporate bond spreads [https://www.ecb.europa.eu/press/economic-bulletin/focus/2025/html/ecb.ebbox202503_01~77cc87aa1f.en.html]