BondBloxx B-Rated USD High Yield Corporate Bond ETF

BondBloxx B-Rated USD High Yield Corporate Bond ETF (XB) tracks an ICE BofA index of U.S. dollar "junk" corporate bonds rated single-B, the middle tier of below-investment-grade credit, with each issuer capped at 2%. It had a trailing yield of 6.98% as of October 27, 2026, paid monthly. Its 0.30% expense ratio is six times the 0.05% charged by broad high yield ETFs such as HYLB and SPHY.

• Over the year to Oct 27, 2026, XB returned +2.4%, 3rd of 8 among similar funds.
• Its worst full calendar year was 2024 (+7.3%); its best was 2023 (+12.9%).
• The deepest fall in its price history was 9.2% (Aug 15, 2022 to Sep 27, 2022), recovered by Feb 1, 2023.

As of Jul 31, 2026, the fund held 622 securities; the ten largest made up 6.63% of assets.

The bonds mature in 5 years on average (weighted by size), with an average coupon of 7.41%.

• Over the three months to Jul 31, 2026, investors added a net $38.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.67%, +0.23%, -0.03%.

XB tracks the ICE BofA Single-B US Cash Pay High Yield Constrained Index. That index starts with the wider ICE BofA US Cash Pay High Yield Index and keeps only bonds rated B1 through B3. The rating is an average of the Moody's, S&P and Fitch ratings. "High yield" or "junk" bonds are rated below investment grade. Their issuers are more likely to default, so they pay more interest. Each bond must have a fixed rate, at least $250 million outstanding and at least one year left to maturity. The issuer must be tied to a developed country such as the U.S., Canada or the U.K. The index had about 605 bonds as of December 31, 2025.

Bonds are weighted by how much of each is outstanding, but no issuer can be more than 2% of the index. Any amount over the cap is spread across the other issuers. The index is rebalanced every month.

BondBloxx Investment Management uses "representative sampling." That means it holds a sample of bonds with traits close to the index's, not every bond in it. It does not make defensive moves when markets fall. At least 80% of assets must be in single-B dollar corporate bonds. As of July 31, 2026, the fund held 622 positions, and the top 10 made up 6.63%. The largest holding was an EchoStar 10.75% bond due 2029, at about 1.2%.

• XB charges 0.3% a year, versus an average of 0.29% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).

XB pays monthly income from higher-yielding single-B corporate bonds, but the credit risk that comes with them makes it a supporting holding, not a foundation.

XB's main appeal is income. It had a trailing yield of 6.98% as of October 27, 2026, paid monthly. Its stress-test record is short. The fund launched on May 26, 2022, so it missed the 2008 crisis, the 2020 crash and most of the 2022 bear market. Its deepest drop was 9.2%, from August 15 to September 27, 2022. It recovered by February 1, 2023, about four months later. All three of its full calendar years were positive, with the lowest return 7.12% in 2024. But single-B bonds are speculative. In a recession, defaults tend to rise and junk bond prices can fall alongside stocks. A retiree who has to sell shares then could lock in losses. Under the SEC's standard example, $10,000 would cost $31 in fees in year one. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).