Market Vectors ETFs Launch Treasury-Hedged High Yield Bond ETF

NEW ETP 2012.03.22

The Market Vectors® Treasury-Hedged High Yield Bond ETF (click here to see) (THHY) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors® US Treasury-Hedged High Yield Bond Index (MVTHHY). The Index was designed to provide exposure to below investment grade corporate bonds, denominated in U.S. dollars; that are, through the use of Treasury notes, hedged against rising interest rates.

The Market Vectors US Treasury-Hedged High Yield Bond Index tracks the performance of long positions in below-investment grade corporate bonds denominated in USD and an equivalent USD amount of short positions in US Treasury notes. 

The index includes high yield bonds where the issuer of the bond is incorporated in the United States. Securities included in the index must have a minimum of 12 months remaining to maturity, a fixed coupon schedule and a minimum amount outstanding of 500 million USD. The index is calculated as a Total Return index and is rebalanced monthly.