(SCHI) Schwab 5-10 Year Corporate - Ratings and Ratios

The Schwab 5-10 Year Corporate Bond ETF (SCHI) is designed for investors seeking exposure to intermediate-term investment-grade corporate bonds. It tracks an index comprising U.S. taxable corporate bonds with maturities between 5 to 10 years and a minimum face value of $300 million. This structure ensures the fund focuses on a specific segment of the corporate bond market, offering targeted exposure to this duration range.

As an ETF, SCHI offers the benefits of passive management, typically resulting in lower fees compared to actively managed funds. With an AUM of over $7.8 billion, it is a substantial and liquid fund, which is appealing to investors who prioritize stability and ease of trading. The funds size often indicates a lower risk of liquidity issues, making it a reliable choice for those seeking steady income from corporate bonds.

Investors should be aware that the funds 5 to 10-year maturity range means it is more sensitive to interest rate changes compared to shorter-term bonds. However, the investment-grade rating of the bonds suggests lower credit risk, making it suitable for risk-averse investors. This ETF is an effective tool for diversifying a portfolio, particularly for those looking to balance equity investments with fixed income, thereby reducing overall portfolio volatility.

Ultimately, SCHI is a straightforward investment option for those interested in the corporate bond market without the need for active management. It provides a cost-efficient way to gain exposure to a specific segment of the bond market, aligning with the needs of investors seeking predictable income and reduced volatility.