BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB)

XBB: Innovative Fund From BondBloxx, But Spreads Are Too Tight

XBB is a well-structured, low-cost ETF offering diversified exposure to BB-rated high-yield bonds, ideal as a fixed income building block. Current market spreads are at historical lows, making XBB primarily a low-yield dividend play with limited upside and significant downside risk. Despite liking XBB's construction, we rate it a 'Sell' due to unfavorable risk/reward, especially when safer assets offer comparable yields.