Investors looking for better diversification and enhanced alpha opportunities should consider a global approach when allocating to high yield.

ETFs were once seen primarily as an equity vehicle; however, fixed income ETFs have shown remarkable popularity, increasingly serving as a core placement in an investor’s passive lineup.

Considering that high-yield ETFs employ a stratified sampling approach, it will always be challenging to track the index during times of increased market volatility.

Investors looking for better diversification and enhanced alpha opportunities should consider a global approach when allocating to high yield. Find out more on Mercer's perspective: The Evolution and Benefits of Global High Yield.