SCHZ Profile
The Schwab U.S. Aggregate Bond ETF seeks to replicate the performance of an index that serves as a comprehensive benchmark for the U.S. investment-grade bond market. This index encompasses a broad array of fixed-income securities, reflecting the overall market for U.S. taxable bonds. The ETF's investment strategy focuses on providing exposure to a diverse range of bonds, including U.S. Treasuries, government-related bonds, corporate debt, and mortgage-backed securities, among others.
To achieve its investment objective, the fund commits at least 90% of its net assets to securities that are constituents of the underlying index. The index tracks various segments of the U.S. bond market, such as mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities, all of which are publicly traded within the United States. This broad scope ensures that the ETF captures a wide spectrum of investment-grade fixed-income securities.
The ETF is designed to offer investors a diversified exposure to the U.S. bond market, making it suitable for those seeking to balance risk and return in their portfolios. By investing in a wide range of bond types, the fund aims to provide stable income and lower volatility compared to equities. It allows investors to gain access to a comprehensive suite of bond instruments, each representing different sectors and credit qualities within the U.S. fixed-income market.
The Schwab U.S. Aggregate Bond ETF caters to investors looking for a diversified, investment-grade bond portfolio that mirrors the overall U.S. bond market. Its broad coverage includes both government and corporate bonds, as well as various types of asset-backed securities. This diversified approach helps mitigate individual security risks and provides a stable income stream, making it a key component for investors seeking to enhance their fixed-income allocation while managing exposure to interest rate and credit risks.
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