BBBI vs SCHI

BBBIBBondBloxx BBB Rated 5-10 Year Corporate Bond ETF

SCHIASchwab 5-10 Year Corporate Bond ETF

In short

BBBI Most investment grade bond funds blend AAA down to BBB. BBBI keeps only the BBB rung, the bottom tier of investment grade, and only bonds maturing in five to ten years. Precision slicing from a bond-only shop, at 0.19%.

SCHI The cheap middle of the corporate bond curve. SCHI holds roughly 2,300 investment-grade corporate bonds maturing in five to ten years, charges three basis points, and pays interest monthly.

Stated mandate

BBBI The Fund seeks to track an index of BBB-rated, fixed-rate, taxable U.S.-dollar corporate bonds from U.S. and non-U.S. issuers with remaining maturities of at least five and less than ten years.

SCHI The fund seeks to track, before fees and expenses, an index representing the intermediate-term U.S. corporate bond market.

Why people hold it

• BBBI Holds only BBB-rated corporate bonds maturing in five to ten years. One rating rung, one maturity band, rather than an AAA-through-BBB blend.
• One of three BondBloxx ETFs that split BBB credit into 1-5, 5-10 and 10+ year buckets, so the maturity band is a choice instead of a package deal.prnewswire.com
• The 0.19% fee sits mid-pack among investment grade corporate bond ETFs, so the narrower screen doesn't come with a specialty markup.
• Literal mandate: a named Bloomberg index, a stated rating, a stated maturity range, income paid monthly. Little room for the portfolio to wander.

• SCHI 0.03% a year against a 0.19% median for investment-grade corporate bond funds. No peer in the group charges less.
• Follows the Bloomberg US 5-10 Year Corporate Bond Index closely, one of the tightest index implementations among intermediate corporate bond funds.schwabassetmanagement.com
• A multi-billion-dollar fund that trades actively, the kind of scale that usually comes with narrow bid-ask spreads.
• About 2,300 bonds spread across the investment-grade corporate market, with income paid monthly rather than quarterly.

Worth knowing

• BBBI BBB is the bottom rung of investment grade, one notch above high yield, so downgrade and credit risk run higher here than in an AAA-heavy blend.
• Costs more than broad intermediate investment grade funds like IGIB and VCIT (0.03% to 0.04%). That gap is the toll for the BBB-only screen.
• Launched in 2024 and thinly traded next to the category giants, so the spread and a limit order deserve a glance before you hit the button.

• SCHI Five-to-ten-year maturities carry real rate sensitivity. When yields move, these bonds swing harder than short-term paper and softer than long bonds.
• Corporate credit only. No Treasuries, no mortgages, and nothing outside the five-to-ten-year window, so it's a slice of the bond market rather than the whole thing.schwabassetmanagement.com
• VCIT, IGIB and SPIB run near-identical mandates at similar cost, so the choice often comes down to index details and where you already hold accounts.

Full BBBI profile⁠

Full SCHI profile⁠