CGHY vs SCYB

CGHYBCapital Group High Yield Bond ETF

SCYBASchwab High Yield Bond ETF

In short

CGHY Capital Group's swing at high yield: an actively managed junk-bond fund with no index to follow, priced at 0.39% in a corner of the market where index rivals charge pennies.

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

CGHY The fund seeks a high level of current income, with capital appreciation as a secondary objective.

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

• CGHY Actively managed with no benchmark to replicate, so the credit team picks which issuers to own rather than buying whatever the index says.capitalgroup.com
• 0.39% expense ratio, just under the typical high-yield ETF's 0.40%. Rare for active management to price at the category median.
• Pays monthly, which suits the current-income job it was built for.
• The portfolio lines up closely with its stated high-yield mandate, and the fund sits in the upper half of a crowded field of 90-plus junk-bond ETFs.

• 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

• CGHY Index rivals are far cheaper: SCYB at 0.03% and SPHY at 0.05%. Active stock-picking in credit has to earn back that gap every year.
• Launched in 2025, so there is no long record of how these managers navigate a full credit cycle inside this wrapper.
• High yield means below-investment-grade credit, where issuer downgrades and default worries drive prices more than interest rates do.capitalgroup.com

• 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 CGHY profile⁠

Full SCYB profile⁠