XCCC ETF

Risk versus reward is crucial in investments; Sharpe and Sortino ratios help gauge risk-adjusted returns, especially in high-yield corporate bonds. The BondBloxx CCC Rated USD High Yield Corporate Bond ETF focuses on high-risk, high-reward CCC-rated bonds, with no issuer exceeding 2% of the portfolio. Comparing BondBloxx's CCC, BB, and B rated bond ETFs aids investors in determining the best risk/reward balance based on economic outlook.

BondBloxx's XCCC ETF offers retail investors access to highly speculative CCC-rated bonds, providing a unique opportunity in a niche fixed income market. The ETF is diversified with no single holding above 2% and a sectoral spread, mitigating risks associated with defaults. Despite the innovative approach, current low credit spreads and rising Chapter 11 defaults suggest caution, leading to a 'Hold' rating for now.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the BondBloxx CCC-Rated USD Yield Corporate Bond ETF (XCCC) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.

VettaFi's Head of Research Todd Rosenbluth discussed the BondBloxx CCC-Rated USD High Yield Corporate Bond ETF (XCCC) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Institutional Income Strategies Channel.

Even though April was a noticeably tough month for high yield bond investing, bonds rated CCC are continuing to prove to be valuable investment choices.

Despite expectations for a recession in the second half of the year, markets were remarkably resilient in 2023. Inflation levels eased through most of the year, which enabled the Fed to pause its interest rate hikes.