Schwab Asset Management has launched the Schwab High Yield Bond ETF (SCYB ). The ETF will provide simple access to the U.S. dollar-denominated high yield corporate bond market.
SCYB looks to track as closely as possible, before fees and expenses, the ICE BofA US Cash Pay High Yield Constrained Index’s total return. The fund seeks to provide broad-based exposure to the U.S. high yield corporate bond market with a focus on liquidity. It also attempts to mitigate investment risk through security selection and issuer diversification.
Director of product strategy and development Nicohl Bogan noted that investors want “low-cost, straightforward products that help diversify their portfolios.” That makes SCYB “a timely addition to” Schwab’s “lineup of fixed income ETFs,” according to Bogan.
Bogan added that SCYB is “compelling… for investors seeking potentially higher-yielding fixed income with the inherent benefits of an ETF.”
Schwab Asset Management is the asset management arm of the Charles Schwab Corp. SCYB is Schwab Asset Management’s ninth bond ETF and 30th ETF overall.
In October, Schwab launched its previous bond ETF, the Schwab Municipal Bond ETF (SCMB ). SCMB provides access to the broad U.S. investment-grade, tax-exempt bond market.
“Advisors have sought to take on added credit risk in recent weeks, according to VettaFi data,” said VettaFi’s head of research Todd Rosenbluth. “With its strong brand and ability to leverage its scale, Schwab is positioned to take advantage.”
SCYB carries an expense ratio of 0.10%.
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