Schwab U.S. Aggregate Bond ETF (SCHZ)
ARCA ARCA Primary 
SCHZ: Shorter Duration Bets In Less Ambiguous Territory
Schwab U.S. Aggregate Bond ETF (SCHZ) offers intermediate-term exposure, weighted to US government debt with AA credit quality and 5.8-year duration. Current macro conditions—an apparent Fed rate hold, controlled inflation, and rising growth risks—favor shorter duration fixed income over SCHZ's longer maturity profile. Yield curve dynamics and potential for steepening make SCHZ's 8-year maturity ambiguous, with shorter maturities (3-4 years) offering more targeted downside YTM exposure.
SCHZ: A Modest Bet On Lower Rates Is Reasonable
Schwab U.S. Aggregate Bond ETF offers low fees, broad investment-grade exposure, and intermediate duration, making it a solid long-term diversifier. SCHZ has outperformed long-duration peers like TLT with lower volatility, but current conditions favor even shorter-duration instruments such as CLIP. Despite intermediate bonds' advantages, short-duration ETFs like CLIP offer similar yields with less risk in the current rate environment.
