

When it comes to surging bond yields, Treasuries aren't the only game in town. That ominous scenario, which means bond prices are declining, is permeating the fixed income space, including corporate debt and the related ETFs.

Markets have dealt with serious whiplash from the Federal Reserve's dramatic policy pivot this year. In just six months, the Fed funds futures market went from pricing in two rate cuts totaling 50 basis points to now pricing in two rate hikes in 2026.

Schwab 5-10 Year Corporate Bond ETF (NYSEARCA:SCHI - Get Free Report) shares reached a new 52-week low on Tuesday. The company traded as low as $21.75 and last traded at $21.79, with a volume of 2258121 shares trading hands. The stock had previously closed at $21.81. Schwab 5-10 Year Corporate Bond ETF Trading Down

Bond ETFs can be a safer alternative to stocks during market volatility. Another appeal is their potential to protect against inflation.


Whether fixed income investors are focused on locking in yield, managing duration risk, or building resilient core portfolios, bond ETFs have been seeing elevated demand this year.

Schwab 5-10 Year Corporate Bond ETF is rated Hold due to insufficient margin of safety for new investors in 2026. SCHI offers a 5%-plus yield and a low 0.03% expense ratio, but its 6-year duration exposes investors to significant rate and credit risk. Stable rates allow the fund's income to deliver, but rising yields or widening BBB spreads could erode returns and NAV.

ETFs can offer retirees built-in diversification and tax efficiency for their investment portfolios. Experts from Vanguard and Schwab share strategies for retirement investing.