State Street My2028 High Yield Corporate Bond ETF (MYHB)

The State Street My2028 High Yield Corporate Bond ETF holds speculative-grade corporate bonds selected to mature in or near 2028, offering investors who can tolerate default risk a way to harvest the higher yields junk-rated issuers must pay while anchoring their portfolio to a defined maturity date.

The maturity-yield intersection

Investors making fixed-income decisions face two independent questions: how much credit risk do I want to take, and what maturity window suits my needs? A bond maturing in 2028 might be issued by a fortress-like company (low risk) or a highly leveraged firm (high risk); both would be appropriate given the time horizon. MYHB resolves the first question in favor of higher yield (accepting lower-rated issuers) and the second in favor of 2028 (a specific maturity window).

The combination is precise: MYHB will not hold any investment-grade bonds, regardless of how safe they are, because the index methodology includes only high-yield debt. Similarly, it will not hold high-yield bonds maturing in 2026 or 2030, only those clustering around 2028. This focuses the investment decision. An investor choosing MYHB is explicitly saying “I want junk-rated debt, and I want it coming due around 2028.”

For institutional investors—pension funds, endowments, or bond managers—this specificity is valuable. A portfolio manager can layer MYHB alongside longer-duration high-yield (say, 2035) and shorter-duration (say, 2026) to build a custom ladder without holding individual bonds. For individual investors, it offers the next-best thing to assembling your own high-yield ladder.

Rebalancing and the rolling portfolio

Each year, MYHB’s portfolio evolves. Bonds that were seven years from maturity are now six; those that are less than a year away are sold. New high-yield bonds maturing further out (2029, 2030) enter the fund, maintaining the roughly five-to-six-year average maturity centered on 2028. This is automatic and rule-based, making it transparent to investors.

The rolling process also means the fund’s industry and issuer mix shifts annually. A firm that strengthened and upgraded from junk to investment grade would drop out (MYHB only holds high-yield). Conversely, a struggling junk issuer that improved its business and upgraded into investment grade would exit the fund. The fund rebalances mechanically by maturity, not by fundamental judgment, so the composition can surprise investors who do not pay close attention.

Performance in different environments

High-yield bonds reward investors in benign credit environments but punish them during recessions or credit panics. MYHB’s returns depend partly on interest-rate direction (like any bond fund) but far more on credit conditions. A drop in the overall interest-rate level lifts all bonds; a tightening of credit spreads (when the market becomes less fearful) lifts high-yield especially. Conversely, recession fears and credit contagion cause high-yield spreads to widen sharply, driving prices down.

From 2008 to 2009, high-yield bonds fell 50 percent or more. From 2020 onward, after pandemic fears eased, they recovered briskly. MYHB would have tracked those swings faithfully. An investor choosing this fund must be comfortable with interim losses of 15 to 30 percent in a credit scare, knowing that if the bonds are held to maturity (2028), most of the principal will be recovered unless defaults are severe.

Expense ratio and liquidity

As a bond fund with active maturity management, MYHB’s costs are higher than a passive, broad-market bond index fund, but State Street’s institutional scale typically keeps them reasonable. The fund trades on the NYSE Arca, and its liquidity depends on market conditions; in normal times, the bid-ask spread is tight, but in credit crises, even bond ETFs can see spreads widen as dealers pull back.

Who buys MYHB and why

Institutional portfolios often use target-date high-yield ETFs like MYHB to fill specific niches. A pension fund needing to fund a liability in 2028 might pair MYHB with investment-grade target-date bonds to create a diversified 2028 bond portfolio. Hedge funds and tactical investors might use MYHB to take a directional bet on credit spreads—short-term, tactical positioning rather than a buy-and-hold strategy.

Individual investors should approach MYHB only if they have the time horizon (roughly 2028), the risk tolerance for high-yield volatility, and the financial means to weather a 20 to 30 percent interim loss without panicking. If you fit that profile and believe credit conditions will remain reasonable over the next few years, MYHB’s higher yield is a sensible trade-off. If you are uncomfortable with junk-rated debt, you belong in investment-grade target-date bonds instead.

Due diligence

Before buying, examine the fund’s fact sheet for the current yield, weighted-average coupon, and average maturity. Review the top 10 or 20 holdings to see which industries and companies dominate the portfolio. Check the prospectus for the index selection rules and any material changes in holdings. Compare MYHB’s yield to other high-yield vehicles (mutual funds, other ETFs) and understand what you are paying in fees relative to the yield you are receiving.