Schwab 5-10 Year Corporate Bond ETF (SCHI)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Schwab 5-10 Year Corporate Bond ETF (SCHI) with AI Score 44/100 (Weak). Schwab 5-10 Year Corporate Bond ETF (SCHI) aims to replicate the performance of U. S. investment-grade corporate bonds with maturities between five and ten years. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 18, 2026Schwab 5-10 Year Corporate Bond ETF (SCHI) Financial Services Profile
Schwab 5-10 Year Corporate Bond ETF (SCHI) provides investors exposure to a diversified portfolio of U.S. investment-grade corporate bonds with intermediate-term maturities, mirroring the performance of its benchmark index and offering a relatively stable income stream within the broader fixed income market.
Investment Thesis
SCHI offers a straightforward way to gain exposure to the intermediate-term U.S. corporate bond market. With a beta of 1.00, SCHI's price movements generally mirror the broader bond market. The ETF's primary value driver is its ability to track the Bloomberg US 5-10 Year Corporate Bond Index effectively. A potential catalyst is increased demand for fixed-income investments amid economic uncertainty, driving inflows into bond ETFs like SCHI. However, rising interest rates pose a risk, potentially decreasing the value of the bonds held by the ETF. Investors should monitor macroeconomic conditions and interest rate trends to assess SCHI's future performance.
Based on FMP financials and quantitative analysis
Key Highlights
- SCHI aims to replicate the performance of the Bloomberg US 5-10 Year Corporate Bond Index, providing targeted exposure to intermediate-term corporate bonds.
- The fund invests at least 90% of its net assets in securities included in the index, ensuring a high degree of correlation with the benchmark.
- SCHI offers a diversified portfolio of U.S. investment-grade corporate bonds, providing a balance between risk and return.
- The ETF structure allows for intraday trading and provides transparency in its holdings, enhancing accessibility for investors.
- SCHI's expense ratio is designed to be competitive, making it a noteworthy option for cost-conscious investors.
Competitors & Peers
Strengths
- Low expense ratio
- High degree of correlation with its benchmark index
- Diversified portfolio of investment-grade corporate bonds
- Daily liquidity
Weaknesses
- Vulnerability to interest rate risk
- Limited potential for outperformance compared to actively managed funds
- Dependence on the performance of the underlying corporate bond market
- No dividend yield
Catalysts
- Upcoming: Potential interest rate cuts by the Federal Reserve, which could increase the value of existing bonds.
- Ongoing: Continued demand for fixed-income investments amid economic uncertainty.
- Ongoing: Growth in the overall ETF market, attracting new investors to bond ETFs like SCHI.
Risks
- Potential: Rising interest rates decreasing bond values.
- Potential: Credit risk associated with corporate bonds defaulting.
- Potential: Economic downturn impacting the corporate bond market.
- Ongoing: Competition from other fixed-income ETFs.
Growth Opportunities
- Increased demand for fixed-income investments: As investors seek stability and income in uncertain economic environments, demand for bond ETFs like SCHI is expected to rise. The global fixed income market is estimated to reach $150 trillion by 2028, providing a substantial opportunity for growth. This trend is ongoing and benefits SCHI due to its established presence and diversified portfolio.
- Expansion of ETF market: The overall ETF market continues to grow, attracting both institutional and retail investors. The global ETF market is projected to reach $15 trillion by 2027. This growth is ongoing and provides a tailwind for SCHI as more investors allocate capital to ETFs for diversification and cost efficiency.
- Rising interest rates: While rising interest rates can negatively impact bond values, they also present an opportunity for SCHI to reinvest in higher-yielding bonds. As older, lower-yielding bonds mature, the fund can replace them with newer bonds offering more attractive yields. This is a potential opportunity that could enhance SCHI's long-term performance.
- Increased adoption by institutional investors: Institutional investors are increasingly using ETFs for portfolio construction and risk management. SCHI's liquidity and transparency make it a noteworthy option for institutions seeking exposure to the intermediate-term corporate bond market. This trend is ongoing and could lead to larger inflows into SCHI.
- Product innovation: SCHI could expand its product offerings by launching new ETFs that target specific segments of the corporate bond market or incorporate ESG factors. This could attract new investors and further diversify the fund's asset base. This is an upcoming opportunity that SCHI could pursue to enhance its market position.
Opportunities
- Increased demand for fixed-income investments
- Expansion of the ETF market
- Rising interest rates allowing for reinvestment in higher-yielding bonds
- Increased adoption by institutional investors
Threats
- Rising interest rates decreasing bond values
- Credit risk associated with corporate bonds
- Economic downturn impacting corporate bond market
- Competition from other fixed-income ETFs
Competitive Advantages
- Low cost: SCHI offers a competitive expense ratio, making it a noteworthy option for cost-conscious investors.
- Index tracking: The fund's passive investment strategy ensures a high degree of correlation with its benchmark index.
- Liquidity: SCHI's ETF structure provides daily liquidity through intraday trading.
- Brand recognition: Schwab is a well-known and trusted brand in the financial services industry.
About SCHI
The Schwab 5-10 Year Corporate Bond ETF (SCHI) is designed to track the performance of the Bloomberg US 5-10 Year Corporate Bond Index. This index comprises U.S. dollar-denominated, investment-grade, fixed-rate, taxable corporate bonds with maturities ranging from five to ten years. SCHI was created to provide investors with a convenient and cost-effective way to access a diversified portfolio of intermediate-term corporate bonds. The fund invests at least 90% of its net assets in securities included in the index, ensuring a high degree of correlation with the index's performance. By focusing on investment-grade bonds, SCHI aims to offer a balance between risk and return, appealing to investors seeking stable income and moderate capital appreciation. The ETF's structure allows for intraday trading and provides transparency in its holdings, making it a popular choice for both institutional and retail investors looking to diversify their fixed-income portfolios. SCHI's investment strategy centers around replicating the index's composition and weighting, minimizing tracking error and delivering returns that closely mirror the performance of the underlying bond market segment. The fund's expense ratio is designed to be competitive, further enhancing its appeal to cost-conscious investors.
What They Do
- Tracks the performance of the Bloomberg US 5-10 Year Corporate Bond Index.
- Invests primarily in U.S. investment-grade corporate bonds with maturities between five and ten years.
- Provides investors with exposure to a diversified portfolio of intermediate-term corporate bonds.
- Offers a cost-effective and transparent way to access the corporate bond market.
- Replicates the index's composition and weighting to minimize tracking error.
- Provides daily liquidity through intraday trading.
Business Model
- Generates revenue through management fees charged on assets under management (AUM).
- Aims to track the performance of its benchmark index, providing returns that closely mirror the index's performance.
- Offers a low-cost investment option compared to actively managed bond funds.
Industry Context
SCHI operates within the fixed income ETF market, which has experienced significant growth as investors seek diversified and liquid ways to access bond markets. The competitive landscape includes other ETFs offering exposure to similar segments of the corporate bond market. Market trends include increasing demand for ESG-focused bond ETFs and a growing emphasis on active management within the fixed income space. SCHI's passive investment strategy differentiates it from actively managed funds, appealing to investors seeking a low-cost, index-tracking approach.
Key Customers
- Retail investors seeking diversified fixed-income exposure.
- Institutional investors using ETFs for portfolio construction and risk management.
- Financial advisors recommending ETFs to their clients.
- Retirement savers looking for stable income and moderate capital appreciation.
Financials
Chart & Info
Schwab 5-10 Year Corporate Bond ETF (SCHI) stock price: Price data unavailable
Latest News
No recent news available for SCHI.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCHI.
Price Targets
Wall Street price target analysis for SCHI.
MoonshotScore
What does this score mean?
The MoonshotScore rates SCHI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Fixed Income ETFsWhat Investors Ask About Schwab 5-10 Year Corporate Bond ETF (SCHI)
What does Schwab 5-10 Year Corporate Bond ETF do?
The Schwab 5-10 Year Corporate Bond ETF (SCHI) is designed to track the performance of the Bloomberg US 5-10 Year Corporate Bond Index. It invests primarily in U.S. dollar-denominated, investment-grade, fixed-rate, taxable corporate bonds with maturities ranging from five to ten years. SCHI provides investors with a diversified portfolio of intermediate-term corporate bonds, offering a cost-effective and transparent way to access this segment of the fixed-income market. The ETF aims to replicate the index's composition and weighting, minimizing tracking error and delivering returns that closely mirror the index's performance.
What do analysts say about SCHI stock?
AI analysis is pending for SCHI, so there is no current analyst consensus available. However, as a fixed-income ETF, key valuation metrics include yield-to-maturity, duration, and expense ratio. Investors may want to evaluate SCHI's ability to track its benchmark index, its credit quality, and its sensitivity to interest rate changes. Growth considerations include the overall demand for fixed-income investments and the expansion of the ETF market. Monitor macroeconomic conditions and interest rate trends to assess SCHI's future performance.
What are the main risks for SCHI?
The main risks for SCHI include interest rate risk, credit risk, and market risk. Rising interest rates can decrease the value of the bonds held by the ETF, leading to potential losses for investors. Credit risk refers to the possibility that issuers of the corporate bonds may default on their payments. Market risk encompasses broader economic factors that can impact the corporate bond market, such as recessions or changes in investor sentiment. Investors should carefully consider these risks before investing in SCHI.
How does Schwab 5-10 Year Corporate Bond ETF compare to competitors in its industry?
SCHI competes with other fixed-income ETFs that offer exposure to the corporate bond market, such as iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). SCHI differentiates itself through its focus on intermediate-term maturities (5-10 years) and its low expense ratio. While LQD offers broader exposure to the investment-grade corporate bond market, SCHI provides a more targeted approach. VCIT is a similar ETF managed by Vanguard. Investors should compare expense ratios, tracking error, and liquidity when evaluating these options.
What are the key financial metrics investors watch for SCHI?
Key financial metrics for SCHI include yield-to-maturity, which represents the total return an investor can expect to receive if the ETF is held until maturity; duration, which measures the ETF's sensitivity to interest rate changes; and expense ratio, which reflects the annual cost of owning the ETF. Investors also monitor the ETF's tracking error, which indicates how closely it follows its benchmark index. Credit quality, as measured by the ratings of the underlying bonds, is another important factor. These metrics help investors assess SCHI's risk and return profile.
What are the key factors to evaluate for SCHI?
Schwab 5-10 Year Corporate Bond ETF (SCHI) currently holds an AI score of 44/100, indicating low score. Key strength: Low expense ratio. Primary risk to monitor: Potential: Rising interest rates decreasing bond values.. This is not financial advice.
How frequently does SCHI data refresh on this page?
SCHI prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven SCHI's recent stock price performance?
Recent price movement in Schwab 5-10 Year Corporate Bond ETF (SCHI) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Low expense ratio. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis is pending for SCHI, so there is no current analyst consensus available.
- The information provided is based on publicly available data and is for informational purposes only.
- Investors should conduct their own research and consult with a financial advisor before making any investment decisions.