BHYB vs SCYB

BHYBAXtrackers USD High Yield BB-B ex Financials ETF

SCYBASchwab High Yield Bond ETF

In short

BHYB High yield with two filters bolted on: no CCC-rated bonds, no financial issuers. You get the BB and B middle of the junk market, at 0.20% a year, half the typical cost in its category.

SCYB Three basis points for the broad US high-yield corporate market. Schwab undercuts a category where the typical fund charges more than ten times as much, spreading the bet across roughly 1,800 bonds and paying monthly.

Stated mandate

BHYB The fund uses a passive representative-sampling strategy to track its Underlying Index, investing primarily in U.S.-dollar-denominated below-investment-grade corporate bonds that meet the index's BB-to-B credit-rating range and exclude financial issuers.

SCYB The fund follows a rules-based strategy intended to track the high-yield bond market, primarily through bonds in the Bloomberg Barclays US Corporate High Yield Total Return Index and similar derivatives.

Why people hold it

• BHYB Costs 0.20% a year against a 0.40% median for high yield bond ETFs. Cheap for a screened portfolio rather than a plain index scoop.
• The rulebook does the credit work: US dollar bonds in the BB-to-B band only, financial issuers excluded. The lowest-rated CCC tier never enters.
• Roughly 1,500 bonds held via representative sampling, with cash paid out monthly.
• Sits among the strongest builds in a crowded high yield field, backed by a multi-billion-dollar asset base.

• SCYB 0.03% a year against a category median of 0.40%. Even the cheap rivals sit above it: SPHY at 0.05%, USHY at 0.08%.
• Tracks the same Bloomberg US Corporate High Yield index as BKHY, which charges 0.22%. Same map, cheaper toll.
• Roughly 1,800 bonds, so no single issuer's blowup drives the outcome. Rules-based and passive, and it has hugged its index closely.
• A multi-billion-dollar fund that trades actively and pays monthly, which matters in a corner of the market where getting out cheaply is half the job.

Worth knowing

• BHYB Broad high yield costs less: SCYB at 0.03%, SPHY and Xtrackers' own HYLB at 0.05%, USHY at 0.08%. The screens carry a price.
• Skipping banks, insurers and CCC credits means the ride can diverge from broad high yield benchmarks in both directions.
• Launched in 2023, so the track record is short, and it trades at moderate volume rather than as a category workhorse.

• SCYB High yield means below-investment-grade credit. These bonds behave more like stocks than Treasuries when the economy sours, and the extra income is the payment for that risk.
• Launched in 2023, so it has a shorter record than rivals that have traded through more credit cycles.
• The strategy can hold derivatives alongside the bonds themselves to track the index, one layer beyond plain bond ownership.

Full BHYB profile⁠

Full SCYB profile⁠