SCHI ETF

The Schwab 5-10 Year Corporate Bond ETF has low fees and mainly invests in high-quality industrial and financial bonds. Oil prices and tensions in the Middle East are important factors that can affect interest rate changes and inflation, which in turn influence the ETF's performance. Although reducing oil supply could lead to lower prices, we are worried about the potential risks in the Middle East and how they might affect oil supply chains.

Schwab 5-10 Year Corporate Bond ETF is a high duration ETF focused on high-grade corporate credit. The portfolio is mostly comprised of industrials and financials, with half of the bonds rated BBB and the other half rated A. The maturity walls in 2024 and 2025 may impact corporate income and credit spreads which could dampen the rate cutting plans of the Fed, as credit spreads are historically low.