BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT) Covered Calls

BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF provides targeted exposure to the U.S. high-yield corporate bond market within the TMT sectors. By tracking the ICE Diversified US Cash Pay High Yield Telecom, Media & Technology Index, the fund offers a precise tool for managing sector-specific credit risk, allowing investors to isolate or overweight high-yield debt in the communications and technology industries.

You can sell covered calls on BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for XHYT (prices last updated Wed 11:45 AM ET):

BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
34.13 +0.03 34.04 34.12 1K - 0.0
Covered Calls For BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT)
Expiration Strike Call Bid Net Debit Return
If Flat
Annualized
Return If Flat
May 15 34 0.00 34.12 -0.4% -6.1%
Jun 18 34 0.00 34.12 -0.4% -2.5%
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Core Business and Products

BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT) is a specialized fixed-income product designed to give investors granular control over their high-yield credit exposure. Launched as part of BondBloxx’s innovative suite of sector-specific bond ETFs, XHYT focuses exclusively on the Telecommunications, Media, and Technology (TMT) industries. As of April 2026, the fund manages approximately $17 million in assets and holds over 300 individual bond securities.

The fund’s portfolio is built around the "three pillars" of the modern digital economy:

  1. Telecommunications: Large-scale debt issuers providing the backbone for 5G, fiber, and wireless connectivity.
  2. Media: Content creators, streaming platforms, and traditional broadcasting companies navigating the shift to digital delivery.
  3. Technology & Electronics: Software-as-a-Service (SaaS) providers, hardware manufacturers, and semiconductor firms with non-investment grade credit ratings.

Top holdings in 2026 include diversified debt from major issuers such as EchoStar, TIBCO Software, and Cloud Software Group. The fund provides a high degree of transparency, with BondBloxx publishing the full credit quality and maturity breakdown of the underlying index daily.

Competitive Landscape

XHYT occupies a unique "precision" niche. While most high-yield ETFs (like HYG or JNK) offer broad-market exposure, XHYT allows tactical traders to bet specifically on the TMT sector, which often exhibits different default risk and interest rate sensitivity than energy or industrials. The fund is fully optionable, though liquidity in its options chain is lower than that of broad-market benchmarks. Its 0.35% expense ratio is significantly lower than the sector-average for specialized credit funds.

Key peers and related high-yield vehicles include:

  1. iShares iBoxx $ High Yield Corporate Bond ETF: The broad-market benchmark that XHYT sub-segments.
  2. BondBloxx USD High Yield Bond Industrial Sector ETF: A sibling fund focusing on the manufacturing and heavy industry credit segments.
  3. BondBloxx USD High Yield Bond Energy Sector ETF: A sibling fund and the largest sector-specific high-yield peer.
  4. BondBloxx USD High Yield Bond Financial & REIT Sector ETF: A peer focusing on financial and real estate credit markets.
  5. BondBloxx USD High Yield Bond Sector Rotation ETF: A fund-of-funds that tactically rotates between XHYT and its sibling sector funds.

Strategic Outlook and Innovation

In 2026, XHYT serves as a "macro-sector" tool. As the technology sector continues to mature, its high-yield debt is increasingly viewed through the lens of recurring revenue models rather than traditional distressed assets. The fund’s monthly distribution—most recently $0.26 in April 2026—provides an annualized yield of approximately 7.9%, attracting income seekers who believe TMT cash flows are more stable than those of other high-yield sectors.

Innovation at BondBloxx involves the use of "rules-based indexing" to ensure that the TMT focus remains pure, excluding companies that generate significant revenue from non-TMT activities. This precision allows institutional managers to "peel off" specific sector risk during periods of tech-market volatility. As of early 2026, XHYT maintains a healthy average maturity of approximately 5 years, positioning it as an intermediate-duration tool for sophisticated credit portfolios.

 
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Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.

Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.

No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.

You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.