USHY: 7.33% On Paper, 6.6% In Reality

Source · https://seekingalpha.com/article/4910243-ushy-7_33-percent-on-paper-6_6-percent-in-reality

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1
The median yield to maturity for USHY's portfolio is 6.54%, which is lower than its weighted average YTM. — This indicates that the fund's average returns are skewed upward by a few high-yielding outliers, suggesting lower actual income potential for the bulk of the holdings.
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Over 63% of USHY's holdings yield less than the headline rate of 7%. — This reveals a discrepancy between marketed headline yields and the reality of the majority of the underlying assets, potentially cooling investor appetite.
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High-yield outliers with YTM over 10% represent only 6.61% of the portfolio by weight. — This confirms that the portfolio has limited exposure to the highest-yielding assets, capping the potential for outsized returns.
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