PGHY provides investors access to short-term U.S. dollar-denominated, high-yield debt that is issued globally. This includes sovereign, quasi-government and corporate bond securities. PGHY has an expense ratio of 0.35% and is expected to issue monthly distributions.
The PGHY, which is based on the DB Global Short Maturity High Yield Bond Index, generally will invest at least 80% of its total assets in bonds included in the Index. The Index tracks the performance of U.S. dollar-denominated, short-term, non-investment grade bonds with three years or less to maturity. These bonds are issued by U.S. and foreign corporations, as well as by supranational, sovereign or sub-sovereign government entities. PGHY and the Index are rebalanced quarterly and re-weighted annually.
“We are excited to launch a timely product solution for income investors looking for a potential protection against rising interest rates,” said Lorraine Wang, Invesco PowerShares senior vice president of new product development. “The PowerShares Global Short Term High Yield Bond Portfolio provides a convenient way for investors to gain exposure to a portfolio of high-yield bonds from issuers around the globe, while taking on a relatively low level of interest rate risk.”