What is a bond ETF's credit spread exposure?

Credit spreads are the extra yield investors demand to hold corporate or lower-quality bonds versus Treasuries. When spreads widen, credit bond prices generally fall.

Bond ETFs with more corporate exposure or lower credit quality tend to be more sensitive to spread changes. In a recession or risk-off shock, spread widening can dominate returns even if Treasury rates fall.

To gauge spread exposure, look at the ETF's sector mix (Treasuries vs corporates), rating breakdown, and historical behavior in credit selloffs. Spread risk is often the key driver in "income" bond ETFs.