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How KORP’s Corporate Bond Yields Have Beaten the Benchmark

BY | ETF Database
10:35 am ET 08/06/26 | 12 VIEWS
On the lookout for corporate bond yields right now? There’s no time like the present to fine tune a bond portfolio. Especially amid growing uncertainty about the rate market and the Fed’s sway over outlooks, adding flexibility and upgraded strategies can make for good preparation. The American Century Diversified Corporate Bond ETF (KORP B-) has beaten its benchmark on a 30-day SEC Yield basis as of July 31st, and could prove a strong option therein.Key Takeaways: KORP has produced a 5.48% 30-day SEC Yield as of July 31st, per American Century Investments data. The strategy charges a 29 bps fee for that active approach, having launched back in 2018. That has helped it outperform its benchmark and could make it an intriguing offering to watch. KORP charges a 29 basis point (bps) fee to actively invest in U.S. corporate bonds. The strategy looks to generate income off of those corporate bond investments. The strategy’s active corporate bond ETF approach looks to maintain a duration of five to seven years. See more: American Century’s Greenblath Talks New Fed Chair, Bonds Specifically, KORP looks at investment-grade debt, with investments dipped into riskier debt as well to get those yields. The fund’s active remit allows it to adapt to potentially significant events. For example, American Century’s Jason Greenblath offered the recent example of Comcast announcing a split into two companies as an event that might impact its bonds.How KORP's Corporate Bond Yields Stack UpThe corporate bond ETF’s investment strategy has helped it produce a strong 30-day Yield of 5.48%.That has beaten the fund’s benchmark, the Bloomberg U.S. Corporate Bond Index. That index, reflected by the Vanguard Total Corporate Bond ETF (VTC B)’s 30-day yield, came in at 5.39% for the same metric as of July 31st, as well. Looking ahead, as uncertainty grows in the bond landscape, adding an active bond ETF could help. The fund’s ETF wrapper helps it lower taxable events, too. Where mutual funds produce more frequent taxable events when investors sell shares, ETFs do not, making them more tax efficient. With greater transparency, too, they become great vehicles for active bond strategies. For more news, information, and analysis, visit the Core Strategies Content Hub.

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