ETF Evaluator: Xtrackers Low Beta High Yield Bond ETF () Follow This ETF

Xtrackers Low Beta High Yield Bond ETF Overview

Xtrackers Low Beta High Yield Bond ETF (HYDW) is a passively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Xtrackers launched the ETF in 2018.

The investment seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Low Beta Index (the "underlying index"). The fund will invest at least 80% of its total assets, (but typically far more) in component securities of the underlying index. The underlying index is designed to track the performance of the segment of the U.S. dollar-denominated high yield corporate bond market that exhibits lower overall beta to the broader high yield corporate fixed income market.

About Xtrackers Low Beta High Yield Bond ETF (HYDW)

There are 2 members of the management team with an average tenure of 3.11 years: Benjamin Spalding (2022) and Nancy Thai (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and Solactive USD HY Corp TlMkt LBeta TR USD index with a weighting of 100%. Xtrackers Low Beta High Yield Bond ETF has 587 securities in its portfolio. The top 10 holdings constitute 6.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Xtrackers Low Beta High Yield Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Xtrackers Low Beta High Yield Bond ETF has 10.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.1% (88.0% domestic bond, 10.1% foreign bond and 0.0% convertible bond). Xtrackers Low Beta High Yield Bond ETF has 1.9% of the portfolio in cash.

Assets Under Management

The fund has $67 million in total assets, which is below the $1 billion average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

HYDW Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Xtrackers Low Beta High Yield Bond ETF expense ratio is below average compared to funds in the High Yield Bond category. Xtrackers Low Beta High Yield Bond ETF has an expense ratio of 0.20%, which is 50% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Xtrackers Low Beta High Yield Bond ETF has a portfolio turnover rate of 54%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.

Recently, in the month of July 2026, Xtrackers Low Beta High Yield Bond ETF returned -0.0%, which earned it a grade of A, as the High Yield Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Xtrackers Low Beta High Yield Bond ETF has a trailing yield of 5.76%, which is below the 6.77% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Xtrackers Low Beta High Yield Bond ETF Grades

Year to date, the ETF has returned 1.3%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.8% over the past year (grade of D), 6.8% over the past three years (grade of F) and 3.4% per year over the past five years (grade of D).

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