SCYB - SCYB: Good But Not The Right Time Yet
2024-05-05 11:17:01 ET
Summary
- Schwab High Yield Bond ETF (SCYB) is a cost-effective option for investors seeking exposure to the high yield bond market.
- SCYB's portfolio consists of diversified high yield corporate bonds, with top holdings including Carnival Corp and Rakuten Group Inc.
- The ETF has underperformed slightly compared to its peers, but its low expense ratio makes it an attractive option for potential future opportunities.
I've been very public for the last 6 months on my views towards high yield credit. I believe credit spreads are far too narrow and we are due for a credit event. I don't like junk bonds here for that reason. Still - one should keep funds like the Schwab High Yield Bond ETF ( SCYB ) on their watch list. I suspect there can be incredible opportunities after a dislocation takes place in high yield, and this is a good fund for broad access....
SCYB: Good But Not The Right Time Yet