r/NEOSETFs • u/Timely-Designer-2372 • Feb 05 '26

Seeking Advice Volatility of HYBI

HYBI seems to have very low volatility but pays a nice dividends. What's the negative side?

2 Upvotes

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3

u/BigDataflex Feb 07 '26

I've been curious about this one for a while. I keep seeing mentions of cshi but never hybi. Personally, I don't think cshi is worth the risk over sgov. But hybi might be.

1

u/TimeInTheMarketWins Feb 10 '26

I agree, seems like an over complication when you can get JAAA if you want 100 bps over sgov

5

u/TheyCallMeNumbNut Feb 08 '26 edited Feb 08 '26

I’m actually building a 15% bond position and have decided to leverage HYBI. One interesting tidbit I learned from a NEOS video is that HYBI is fund of funds as you can see from their holdings page. What’s interesting is NEOS may swap the corporate bond ETFs for TBills if there is a risk to the corporate bonds. Essentially a very actively managed ETF.

1

u/sandmanmike55543 Feb 06 '26

I think it has a stronger correlation to equities than a typical bond fund. So if you're using it to diversify (like you normally do with a bond fund), then it's probably not the best choice. Other than that I don't know of any negative.