SCYB vs XCCC

SCYBASchwab High Yield Bond ETF

XCCCBBondBloxx CCC Rated USD High Yield Corporate Bond ETF

In short

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.

XCCC Most junk bond funds bury CCC credits inside a blend of BB and B. XCCC isolates them: a single-rung fund holding the lowest tier of the high yield market, the last stop before default.

Stated mandate

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.

XCCC The fund seeks total return by primarily investing, through other ETFs, in U.S.-dollar-denominated high-yield corporate bonds across sectors of the fixed-income market.

Why people hold it

• 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.

• XCCC A pure ratings slice. It tracks a CCC-only high yield index rather than the whole junk market, so the exposure stays exactly where you pointed it.bondbloxxetf.com
• Fee is 0.40%, the median for high yield bond ETFs, and below the 0.55% charged by HYSA, the other fund declaring the same benchmark.
• Live since 2022 and has hugged its index closely, holding roughly 150 bonds rather than a token handful of names.
• Trades steadily for such a specialized credit strategy and lands in the upper half of its high yield ETF peer group overall.

Worth knowing

• 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.

• XCCC CCC is the bottom rung. Swings and credit losses here run deeper than in broad high yield, which is the trade you are making for the yield.
• Broad junk funds cost a fraction: SCYB 0.03%, SPHY 0.05%, USHY 0.08%. The 0.40% here buys the targeted rung, not wider market coverage.
• Concentrated by design. With roughly 150 bonds from the market's most fragile corner, a few stressed issuers can leave a mark.

Full SCYB profile⁠

Full XCCC profile⁠