Market Vectors Index Solutions has licensed the Market Vectors US Treasury-Hedged High Yield Bond Index (MVTHHY) to Van Eck Global, the fifth largest provider of exchange-traded products in the US and the eighth largest globally.
The index underlies the Market Vectors Treasury-Hedged High Yield Bond ETF (THHY) which began tracking the index on 22 March 2013.
The Market Vectors US Treasury-Hedged High Yield Bond Index tracks the performance of long positions in below-investment grade corporate bonds denominated in US Dollars and an equivalent US Dollar amount of short positions in US Treasury notes.
Bonds in the long portfolio must have below-investment grade ratings. The high yield bonds included in the index must have a minimum of 12 months remaining to maturity, a fixed coupon schedule and a minimum amount outstanding of USD500m. The index includes high yield bonds where the issuers are incorporated in the US.
The index is calculated as a total return index and is rebalanced monthly.
The index is the latest addition to the Market Vectors fixed income indices including Market Vectors Renminbi Bond Index and Market Vectors US Investment Grade Floating Rate Index.
