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Upturn AI SWOT - About
Quadratic Deflation ETF (BNDD)
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Upturn Advisory Summary
03/06/2025: BNDD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit -16.6% | Avg. Invested days 36 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/06/2025 |
Key Highlights
Volume (30-day avg) 3700 | Beta 0.93 | 52 Weeks Range 13.08 - 14.66 | Updated Date 04/2/2025 |
52 Weeks Range 13.08 - 14.66 | Updated Date 04/2/2025 |
Upturn AI SWOT
Quadratic Deflation ETF
ETF Overview
Overview
The Quadratic Deflation ETF seeks to provide exposure to potential deflationary environments through a combination of U.S. Treasury Inflation-Protected Securities (TIPS) and options on the Treasury yield curve.
Reputation and Reliability
Quadratic Capital Management is a relatively new and specialized ETF issuer, focusing on fixed income strategies.
Management Expertise
The management team has experience in fixed income and derivatives trading.
Investment Objective
Goal
To provide exposure to potential deflationary environments and benefit from a steepening yield curve.
Investment Approach and Strategy
Strategy: The ETF uses a combination of TIPS and options to hedge against inflation and benefit from yield curve movements.
Composition The ETF primarily holds U.S. Treasury Inflation-Protected Securities (TIPS) and options contracts related to the Treasury yield curve.
Market Position
Market Share: The ETF has a small market share within the broader fixed income ETF market.
Total Net Assets (AUM): 23160000
Competitors
Key Competitors
- TIP (iShares TIPS Bond ETF)
- VTIP (Vanguard Short-Term Inflation-Protected Securities ETF)
- SCHP (Schwab U.S. TIPS ETF)
Competitive Landscape
The ETF industry is competitive, with several large players offering similar fixed-income products. Quadratic Deflation ETF differentiates itself through its specific focus on deflation hedging using options and TIPS, which gives it a niche advantage, however, its AUM is small in relation to competitors.
Financial Performance
Historical Performance: The ETF's performance is dependent on inflation expectations and yield curve movements; historical data would need to be fetched from financial data providers.
Benchmark Comparison: The ETF does not directly track a benchmark index, making comparison more nuanced. Its performance should be compared to indicators of inflation expectations and yield curve changes.
Expense Ratio: 0.99
Liquidity
Average Trading Volume
The ETF's average trading volume is moderate, potentially impacting transaction costs for large trades.
Bid-Ask Spread
The bid-ask spread may vary depending on market conditions and trading volume, impacting execution costs.
Market Dynamics
Market Environment Factors
Economic indicators like CPI, PPI, and Treasury yield curve movements significantly influence Quadratic Deflation ETF.
Growth Trajectory
The ETF's growth is dependent on investor interest in deflation hedging and its ability to deliver returns in the appropriate economic environment, but it has remained flat or declining.
Moat and Competitive Advantages
Competitive Edge
Quadratic Deflation ETF possesses a unique investment strategy of combining TIPS and options on the Treasury yield curve. This strategy offers investors a specialized approach to hedge against deflationary environments. Its focus on deflation sets it apart from broad fixed-income ETFs. However, its higher expense ratio and niche strategy may be drawbacks for some investors.
Risk Analysis
Volatility
The ETF's volatility is tied to inflation expectations and yield curve dynamics, potentially leading to fluctuations in value.
Market Risk
The ETF is subject to interest rate risk and the risk of incorrect inflation expectations impacting its performance.
Investor Profile
Ideal Investor Profile
Investors who are concerned about deflationary scenarios and seek to hedge against potential declines in the price level.
Market Risk
The ETF is better suited for experienced investors or those who have a good understanding of both inflation and options trading. The ETF's sophisticated structure is better suited for experienced investors and may not be ideal for long-term investment.
Summary
Quadratic Deflation ETF targets deflationary environments using TIPS and options strategies, offering a unique approach. Its specialized strategy differentiates it from broad-based fixed-income funds. Investors must be mindful of interest rate risk and inflation expectation volatility. Its higher expense ratio and complex investment strategy make it suitable for sophisticated investors with a view on deflation.
Similar Companies
- TIP
- VTIP
- SCHP
- LTPZ
Sources and Disclaimers
Data Sources:
- ETF.com
- Morningstar
- Company Fact Sheet
- Bloomberg
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The data is based on available public information and may not be completely accurate or up-to-date.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Quadratic Deflation ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund invests in Treasuries of various maturities directly or through other exchange-traded funds that invest in Treasuries. The "option strategies" used by the fund are options strategies of various maturities that are tied to the shape of the U.S. interest rate swap curve and structured to limit the loss to the fund and include long options, long spreads and butterflies. The fund is non-diversified.
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