XCCC: 3 Reasons Why I Would Avoid This High Yield ETF
Summary
- The BondBloxx CCC Rated USD High Yield Corporate Bond ETF 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.
- I rate XCCC a Sell and prefer to focus on higher quality high yield bonds.
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