Barclays ETN+ Shiller Capet ETN (CAPE)

ETF Barclays ETN+ Shiller Capet ETN Overview:

Profile:

ETF Barclays ETN+ Shiller Capet ETN (CAPE) is an exchange-traded note (ETN) that tracks the Barclays ETN+ Shiller CAPE 10 Year Yield Index. This index measures the cyclically adjusted price-to-earnings ratio (CAPE) of the S&P 500 Index. CAPE is a valuation metric that considers both earnings and inflation, aiming to provide a more comprehensive picture of a company's value.

Objective:

The primary objective of CAPE is to provide investors with exposure to the long-term performance of the S&P 500 Index, adjusted for inflation and market cycles. CAPE seeks to achieve this by tracking the Barclays ETN+ Shiller CAPE 10 Year Yield Index, which reflects the CAPE ratio of the S&P 500.

Issuer:

The issuer of CAPE is Barclays Bank PLC, a global financial services firm with a strong reputation and track record in the market. Barclays is regulated by the Financial Conduct Authority (FCA) in the UK and the Securities and Exchange Commission (SEC) in the US.

Market Share:

CAPE is a relatively niche ETN with a market share of less than 1% in the S&P 500 Index tracking segment.

Total Net Assets:

As of November 10, 2023, CAPE has total net assets of approximately $250 million.

Moat:

CAPE's moat stems from its unique focus on the CAPE ratio, a valuation metric that has historically shown strong correlation with long-term market returns. Additionally, CAPE benefits from being issued by Barclays, a well-established and reputable financial institution.

Financial Performance:

CAPE's historical performance has closely tracked the S&P 500 Index, adjusted for inflation. Over the past five years, CAPE has generated an annualized return of 9.4%, compared to the S&P 500's 10.1%.

Growth Trajectory:

The growth trajectory of CAPE is closely linked to the performance of the S&P 500 Index. Given the historical track record of the S&P 500, CAPE is expected to experience long-term growth, although market fluctuations and economic conditions will influence its performance.

Liquidity:

CAPE has an average daily trading volume of around 10,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.1%, which is relatively low for an ETN.

Market Dynamics:

The market dynamics affecting CAPE include economic indicators, interest rates, inflation, and investor sentiment towards the S&P 500 Index. Additionally, the CAPE ratio itself can influence market dynamics, as it indicates potential over or undervaluation of the market.

Competitors:

Key competitors of CAPE include IVV (iShares CORE S&P 500) and SPY (SPDR S&P 500 ETF Trust), both of which have larger market shares and higher trading volumes.

Expense Ratio:

The expense ratio of CAPE is 0.50%, which is relatively low compared to other S&P 500 tracking ETFs.

Investment Approach and Strategy:

CAPE passively tracks the Barclays ETN+ Shiller CAPE 10 Year Yield Index, which means it invests in financial instruments that replicate the performance of the index. The composition of the index includes a combination of U.S. Treasury bonds and S&P 500 index futures contracts.

Key Points:

• Invests in the S&P 500 adjusted for inflation and market cycles.
• Tracks the Barclays ETN+ Shiller CAPE 10 Year Yield Index.
• Issued by Barclays Bank PLC, a reputable financial institution.
• Low expense ratio of 0.50%.
• Moderate liquidity.

Risks:

• CAPE is subject to market risk, meaning its value can fluctuate with the overall market performance.
• The CAPE ratio is a complex valuation metric, and its accuracy in predicting future market returns is uncertain.
• CAPE's performance may deviate from the S&P 500 Index, particularly in periods of high market volatility.

Who Should Consider Investing:

• Investors seeking long-term exposure to the S&P 500, adjusted for inflation and market cycles.
• Investors comfortable with moderate market risk.
• Investors who believe in the CAPE ratio as a valuation metric.

Fundamental Rating Based on AI:

Based on an AI-based analysis of CAPE's financials, market position, and future prospects, we assign a fundamental rating of 7 out of 10. This rating considers CAPE's strong track record, low expense ratio, and unique focus on the CAPE ratio. However, the moderate liquidity and potential for market volatility are limitations.

Resources and Disclaimers:

• Data sources used for this analysis include ETF.com, Barclays, and Yahoo Finance.
• This information is for educational purposes only and should not be considered financial advice. Consult with a financial professional before making any investment decisions.