SCHI 📈 Schwab 5-10 Year Corporate - Overview

The Schwab 5-10 Year Corporate Bond ETF, listed on NYSE ARCA under the ticker SCHI, is designed to track the performance of a specific index that focuses on U.S. investment-grade, taxable corporate bonds. This index includes bonds with maturities ranging from five to ten years, which helps to maintain a balanced portfolio with a moderate term to maturity. Furthermore, the bonds included in the index must have a substantial amount of outstanding face value, specifically $300 million or more, ensuring that the fund invests in highly liquid and reliable corporate debt securities.

In terms of its investment strategy, the fund adheres to a policy where it invests at least 90% of its net assets in securities that are components of the tracked index. This approach allows the fund to closely replicate the performance of the index, providing investors with exposure to a broad range of U.S. corporate bonds within the specified maturity range. The fund's ISIN, US8085246986, is a unique identifier that facilitates its trading and clearing processes. As an ETF, it offers the benefits of transparency, diversification, and flexibility, making it an attractive option for investors seeking to allocate a portion of their portfolio to corporate bonds with a moderate term to maturity.

Classification as a Corporate Bond ETF places the Schwab 5-10 Year Corporate Bond ETF in a category of investment products that are specifically designed to provide exposure to the corporate bond market. This category is characterized by a focus on investment-grade bonds, which are considered to have a lower risk of default compared to non-investment-grade bonds. By concentrating on bonds with maturities between five and ten years, the fund is able to offer a yield that is typically higher than that of shorter-term bonds, while also managing the interest rate risk associated with longer-term bonds. This makes the Schwab 5-10 Year Corporate Bond ETF a viable option for investors seeking to generate regular income from their investments while maintaining a moderate level of risk.