Schwab 5-10 Year Corporate Bond ETF (SCHI)
SCHI: 2026 Rate Uncertainty Makes It A Hold
Schwab 5-10 Year Corporate Bond ETF is rated Hold due to insufficient margin of safety for new investors in 2026. SCHI offers a 5%-plus yield and a low 0.03% expense ratio, but its 6-year duration exposes investors to significant rate and credit risk. Stable rates allow the fund's income to deliver, but rising yields or widening BBB spreads could erode returns and NAV.
Schwab 5-10 Year Corporate Bond ETF (NYSEARCA:SCHI) Sees Significant Decrease in Short Interest
Schwab 5-10 Year Corporate Bond ETF (NYSEARCA:SCHI - Get Free Report) was the recipient of a large decline in short interest during the month of December. As of December 31st, there was short interest totaling 296,527 shares, a decline of 24.0% from the December 15th total of 389,991 shares. Based on an average daily trading
Bank of New Hampshire Purchases 37,086 Shares of Schwab 5-10 Year Corporate Bond ETF $SCHI
Bank of New Hampshire raised its position in Schwab 5-10 Year Corporate Bond ETF (NYSEARCA:SCHI) by 27.2% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 173,258 shares of the company's stock after acquiring an additional 37,086 shares
Creative Planning Grows Stake in Schwab 5-10 Year Corporate Bond ETF $SCHI
Creative Planning increased its holdings in Schwab 5-10 Year Corporate Bond ETF (NYSEARCA:SCHI) by 8.6% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 77,651 shares of the company's stock after purchasing an additional 6,154 shares during
SCHI: Quality Intermediate-Term Investment-Grade Corporate Exposure
Schwab 5-10 Year Corporate Bond ETF (SCHI) offers low-cost exposure to investment-grade corporate bonds with intermediate maturities and controlled risk. SCHI benefits from stable financial conditions and compressed credit spreads, making carry the primary source of return in the current environment. With an average duration of 6 years, SCHI is sensitive to rising rates, but the current declining rate environment limits this risk.
SCHI: Intermediate Corporate Bond Outlook
SCHI offers diversified exposure to US investment-grade corporate bonds with 5-10 year maturities, low expenses, and moderate interest rate sensitivity. The ETF uses a resampling strategy to minimize tracking error and transaction costs, maintaining a portfolio of over 2,200 bonds and a 21% turnover rate. Macro indicators like the butterfly heatmap and z-score suggest the current opportunity for tactical gains from curve or spread movements is limited.
SCHI: Imminent Middle East Issues Could Derail Cutting Hopes
The Schwab 5-10 Year Corporate Bond ETF has low expense ratios and focuses on industrial and financial bonds with above junk ratings. Oil prices and Middle East tensions are critical factors influencing rate cuts and inflation, impacting the ETF's performance through duration effects. While supply cut phaseouts mean downside for oil, we're somewhat concerned about the imminent dangers in the Middle East and the issues that could spring up around oil supply chains.
SCHI: Corporate Bonds Could Still Avoid Credit Risk (But Not For Long)
Schwab 5-10 Year Corporate Bond ETF is a passively managed fund that tracks the Bloomberg US 5-10 Year Corporate Bond Index. SCHI has a low expense ratio of 0.03% and its ETF wrapper provides a tax advantage for taxable-account holders. The fund offers high diversification and exposure to industrials and financials sectors, but carries more credit risk than government bonds.
SCHI: Taking Issue With Credit Spreads
Schwab 5-10 Year Corporate Bond ETF is a high duration ETF focused on high-grade corporate credit. The portfolio is mostly comprised of industrials and financials, with half of the bonds rated BBB and the other half rated A. The maturity walls in 2024 and 2025 may impact corporate income and credit spreads which could dampen the rate cutting plans of the Fed, as credit spreads are historically low.
U.S. Weekly Fund Flows Insight Report: Conventional Fund And ETF Investors Give A Cold Shoulder To Equity Funds For The Fund Flows Week
Investors were net sellers of fund assets for the second week in three, redeeming a net $11.6B for the LSEG Lipper fund flows week ended Wednesday (February 21). For the flows week, the Treasury yield rose at all maturities of the curve, except for the two-month yield, which experienced a one basis point decline to end the week at 5.50%.
SCHI: Attractive Yield But Investors Can Wait Till An Economic Recession
Schwab 5-10 Year Corporate Bond ETF has declined over 23% since the end of 2021 and offers an attractive yield of about 6.2%. SCHI has little credit risk as its portfolio consists of investment grade corporate bonds with low default rates. Investors should wait for an economic recession to buy as market selloffs should provide better buying opportunities.