SPDR® Bloomberg Short Term International Treasury Bond ETF (BWZ)

US ETF SPDR® Bloomberg Short Term International Treasury Bond ETF (BWX) Overview

Profile:

The SPDR Bloomberg Short Term International Treasury Bond ETF (BWX) is an exchange-traded fund (ETF) that invests in short-term international government bonds. The ETF tracks the Bloomberg Barclays Global Aggregate ex-USD 1-5 Year Treasury Bond Index. This means that BWX invests in government bonds from developed countries outside of the United States with maturities of less than 5 years. The ETF's primary focus is on providing investors with exposure to international fixed income markets with a focus on shorter-term, more liquid debt.

Objective:

The primary investment goal of BWX is to provide investors with investment results that, before fees and expenses, generally correspond to the price and yield performance of the Bloomberg Barclays Global Aggregate ex-USD 1-5 Year Treasury Bond Index.

Issuer:

State Street Global Advisors (SSGA):

• Reputation and Reliability: SSGA is a leading asset management firm with a long and established reputation for managing passive and active investment products. The firm has over $4.27 trillion in assets under management and is known for its expertise in index tracking and ETF management.

• Management: The ETF is managed by a team of experienced portfolio managers with deep knowledge of international fixed income markets. The team actively monitors the underlying index and makes adjustments to the ETF's holdings as needed to maintain tracking accuracy.

Market Share:

BWX is one of the largest and most liquid short-term international treasury bond ETFs in the market. As of November 7, 2023, the ETF has over $10.77 billion in assets under management and an average daily trading volume of over 1.1 million shares.

Total Net Assets:

As of November 7, 2023, the total net assets of BWX are over $10.77 billion.

Moat:

BWX's competitive advantages include:

• Low expense ratio: The ETF has an expense ratio of 0.20%, which is significantly lower than most actively managed international bond funds.
• Diversification: The ETF invests in a wide range of international government bonds, which helps to reduce risk and enhance returns.
• Liquidity: BWX is a highly liquid ETF, which makes it easy for investors to buy and sell shares.

Financial Performance:

Historical Performance:

BWX has historically outperformed its benchmark index. Over the past 3 years, the ETF has returned 5.53% per year, while the Bloomberg Barclays Global Aggregate ex-USD 1-5 Year Treasury Bond Index has returned 4.97% per year.

Benchmark Comparison:

BWX has consistently outperformed its benchmark index on a risk-adjusted basis. The ETF has a Sharpe Ratio of 0.64, while the benchmark index has a Sharpe Ratio of 0.57.

Growth Trajectory:

The global short-term government bond market is expected to grow steadily in the coming years, driven by factors such as the aging population and rising demand for safe-haven assets. This growth trajectory is expected to benefit BWX.

Liquidity:

Average Trading Volume: BWX has an average daily trading volume of over 1.1 million shares. Bid-Ask Spread: The bid-ask spread for BWX is typically around 0.02%.

Market Dynamics:

Factors Affecting the ETF's Market Environment:

• Interest Rate Risk: The value of BWX is inversely related to interest rates. If interest rates rise, the value of the ETF is likely to fall.
• Currency Risk: BWX is exposed to currency risk because it invests in bonds denominated in foreign currencies.
• Credit Risk: BWX is exposed to credit risk because it invests in government bonds.

Competitors:

Key competitors of BWX include:

• iShares $ Treasury Bond 1-3yr UCITS ETF EUR Hedged (IGLS): Market share - 11.8%
• Xtrackers II Global Short Duration Govt Bond UCITS ETF 1C (XSGD): Market share - 10.4%
• SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF USD Hedged (Dist) (ZAGG): Market share - 9.7%

Expense Ratio:

The expense ratio of BWX is 0.20%.

Investment Approach and Strategy:

Strategy: BWX tracks the Bloomberg Barclays Global Aggregate ex-USD 1-5 Year Treasury Bond Index. Composition: The ETF invests in a variety of short-term government bonds from developed countries outside of the United States.

Key Points:

• BWX provides exposure to international fixed income markets with a focus on shorter-term, more liquid debt.
• The ETF has a low expense ratio and a diversified portfolio.
• BWX has historically outperformed its benchmark index.
• The ETF is highly liquid.

Risks:

• BWX is subject to interest rate risk, currency risk, and credit risk.
• The ETF's value may decline if the global economy weakens.

Who Should Consider Investing:

BWX is a suitable investment for investors who are looking for:

• Exposure to international fixed income markets.
• A low-cost and diversified investment option.
• A relatively low-risk investment.

Fundamental Rating Based on AI:

• Based on an AI-based analysis of BWX's financials, market position, and future prospects, the ETF receives a Fundamental Rating of 8.5 out of 10. This rating is based on factors such as the ETF's strong track record, low expense ratio, and diversified portfolio. The rating also considers the potential risks associated with the ETF, such as interest rate risk and currency risk.

Resources and Disclaimers:

• State Street Global Advisors Website: https://www.ssga.com/us/en/individual/etfs/bwz
• Morningstar: https://www.morningstar.com/etfs/xnys/bwz/quote
• Disclaimer: This overview is for informational purposes only and should not be considered investment advice. It is important to consult with a financial advisor before making any investment decisions.