BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

XCCC

Market cap $262M

BondBloxx CCC Rated USD High Yield Corporate Bond ETF offers high yields but carries significant credit risk due to its focus on CCC-rated bonds. Current high-yield spreads are tight, making XCCC unattractive for new positions; holding is advised if already owned, but avoid new entries for now. The ETF's moderate duration, sector concentration, and high turnover ratio highlight risks tied to refinancing and potential spread widening.

Geopolitical and economic uncertainty — and gold touching $4,000 an ounce — is pushing income-seeking investors back toward the best bond ETFs.

A Fed cut and a drop in the 10-year means you need to buy riskier junk bonds if you want higher yields. This ETF just might fill the order.

Very few high yield funds go right at the bottom of the barrel to get returns. XCCC is a rare bird that dives head first into the CCC rated bonds. Interestingly enough, it has taken CLO funds like ECC and OXLC to the cleaners since its inception.

BondBloxx's ETF offers targeted exposure to a specific high yield rating band, filling a unique niche in the fixed income market. Retail investors now have efficient access to CCC-rated junk bonds, a segment previously difficult to reach. The ETF's structure could attract institutional investors, potentially increasing assets under management and liquidity.

Investors understand idioms like “don't put all your eggs in one basket,” but what does that really mean when it comes to their investments? There has to be a better plan than going all or nothing in risky technology stocks or conservative utilities stocks.

The BondBloxx CCC Rated High Yield Corporate Bond ETF (XCCC) offers investors exposure to CCC rated high yield bonds. CCC high yield bonds have historically delivered weak risk-adjusted returns due to their high realized volatility. Current credit spreads for CCC bonds are very tight compared to historical norms and could widen if interest rates move higher.

BondBloxx CCC Rated USD High Yield Corporate Bond ETF has delivered a 28.22% total return since July 2022 and surged 6% in the past six months. The Fund offers sector diversification, intermediate bond exposure, and a compelling 30-day SEC yield of 10.37%, challenging peers such as BlackRock's HYG ETF. Favorable U.S. economic conditions, including lower interest rates and stable inflation, support a bullish outlook for high-yield bonds like the XCCC ETF in 2025.

The 'Undercovered' Dozen series highlights lesser-covered ETFs, offering insights from various authors on potential investment opportunities and market trends. Global X Uranium ETF is seen as well-placed for a uranium bull market, driven by increasing demand for nuclear energy from major tech companies. iShares MSCI India ETF offers exposure to India's fast-growing economy, presenting perhaps a strong investment opportunity despite recent pullbacks due to shifts towards the Chinese market.

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.