BondBloxx Debuts High Yield ETFs Targeting Specific Credit Rating

May 26, 2022

Relative ETF newcomer BondBloxx Investment Management Corp. is rounding out its set of fixed income ETFs with three funds holding corporate debt based on credit ratings rather than by sector. 

The BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB), the BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) and the BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC) all debuted on the NYSE Arca on Thursday, with respective expense ratios of 0.20%, 0.30% and 0.40%. 

All three funds hold bonds listed in an ICE high yield index within their specific credit rating based on an average of a company’s rating among the three major credit measuring agencies. 

The only other ETF that specifically targets junk bonds with a specific credit rating is the $164.6 million iShares BB Rated Corporate Bond ETF (HYBB), which comes with an expense ratio of 0.25%, and also follows an ICE high yield index. 

Contact Dan Mika at [email protected], and follow him on Twitter 

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