Schwab to launch Schwab High Yield Bond ETF in July

By Marisa Wong

Los Angeles, June 26 – Schwab Asset Management, the asset management arm of Charles Schwab Corp., announced the launch of an exchange-traded fund, the Schwab High Yield Bond ETF (NYSE Arca: SCYB).

The ETF will provide simple access to the U.S. dollar-denominated high-yield corporate bond market, Schwab said in a press release.

The goal of the ETF is to track as closely as possible, before fees and expenses, the total return of the ICE BofA US Cash Pay High Yield Constrained Index.

More specifically, the ETF seeks to provide broad-based exposure to the U.S. high-yield corporate bond market with a focus on liquidity, while attempting to mitigate investment risk through security selection and issuer diversification, Schwab said.

The first day of trading is expected to be on or about July 11.

With an expense ratio of 0.1%, the ETF is priced in line with the lowest fee ETFs in the Morningstar High Yield Bond category, Schwab said.

Schwab is a Westlake, Tex.-based savings and loan holding company.

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