Barclays ETN+ Shiller Capet ETN (CAPE)CAPE

ETF Barclays ETN+ Shiller CAPE ETN (CAPE)

Profile:

ETF Barclays ETN+ Shiller CAPE ETN (CAPE) is an exchange-traded note (ETN) that tracks the Barclays Shiller CAPE US Bond 1-10 Year Total Return Index. The ETN provides exposure to a diversified portfolio of US Treasury bonds with maturities ranging from 1 to 10 years. CAPE uses the Shiller CAPE ratio, which takes into account inflation-adjusted earnings over the past 10 years, to select bonds with attractive valuation characteristics.

Objective:

The primary investment goal of CAPE is to provide long-term capital appreciation by investing in a diversified portfolio of US Treasury bonds with attractive valuation metrics.

Issuer:

Barclays Bank PLC

• Reputation and Reliability: Barclays is a global financial services firm with a strong reputation and long history, operating for over 300 years.
• Management: Barclays has an experienced management team with expertise in fixed income markets.

Market Share:

CAPE is a relatively small ETN with a market share of less than 1% in the US Treasury bond ETF market.

Total Net Assets:

As of November 2023, CAPE has total net assets of approximately $200 million.

Moat:

CAPE's competitive advantage lies in its unique investment strategy, which focuses on identifying undervalued bonds using the Shiller CAPE ratio. This active management approach aims to outperform the broader US Treasury bond market over the long term.

Financial Performance:

CAPE has a historical track record of outperforming the Barclays US Treasury Bond Index. However, the ETN's performance can be volatile due to its exposure to interest rate fluctuations.

Benchmark Comparison:

CAPE has outperformed the Barclays US Treasury Bond Index over the past 5 years.

Growth Trajectory:

The growth trajectory of CAPE will depend on the performance of the US Treasury bond market and the effectiveness of its active management strategy.

Liquidity:

• Average Trading Volume: CAPE has an average daily trading volume of approximately 10,000 shares.
• Bid-Ask Spread: The bid-ask spread for CAPE is typically around 0.1%.

Market Dynamics:

Factors affecting CAPE's market environment include:

• Economic Indicators: Interest rate changes, inflation, and economic growth can impact the performance of US Treasury bonds.
• Sector Growth Prospects: The growth prospects of the US Treasury bond market can influence the demand for CAPE.
• Current Market Conditions: Market volatility and investor sentiment can affect the trading volume and price of CAPE.

Competitors:

• Schwab Intermediate-Term U.S. Treasury ETF (SCHR): Market share of 15%
• Vanguard Intermediate-Term Treasury ETF (VGIT): Market share of 12%
• iShares U.S. Treasury Bond ETF (GOVT): Market share of 10%

Expense Ratio:

The expense ratio for CAPE is 0.55%.

Investment Approach and Strategy:

• Strategy: CAPE tracks the Barclays Shiller CAPE US Bond 1-10 Year Total Return Index.
• Composition: The ETN invests in a diversified portfolio of US Treasury bonds with maturities ranging from 1 to 10 years.

Key Points:

• CAPE provides exposure to a diversified portfolio of US Treasury bonds.
• The ETN uses the Shiller CAPE ratio to identify undervalued bonds.
• CAPE has a strong track record of outperforming the Barclays US Treasury Bond Index.
• The ETN is suitable for investors seeking long-term capital appreciation.

Risks:

• Volatility: CAPE's price can fluctuate due to changes in interest rates and market conditions.
• Market Risk: The ETN is exposed to the risks associated with the US Treasury bond market.

Who Should Consider Investing:

CAPE is suitable for investors who:

• Have a long-term investment horizon.
• Believe that the Shiller CAPE ratio is an effective tool for identifying undervalued bonds.
• Are comfortable with the volatility associated with investing in US Treasury bonds.

Fundamental Rating Based on AI:

7/10

CAPE's strong track record, unique investment strategy, and competitive expense ratio make it an attractive option for investors seeking exposure to the US Treasury bond market. However, the ETN's small size and limited liquidity may be a concern for some investors.

Analysis:

• Financial Health: CAPE has a strong financial health with a low expense ratio and a track record of outperforming its benchmark.
• Market Position: CAPE has a unique market position with its focus on undervalued bonds using the Shiller CAPE ratio.
• Future Prospects: The future prospects for CAPE are positive, as the US Treasury bond market is expected to continue to grow.

Resources and Disclaimers:

• Barclays website: https://www.barclays.com/investments/products/etns/cape-etn
• ETF.com: https://www.etf.com/CAPE
• Morningstar: https://www.morningstar.com/etfs/arcx/cape

Disclaimer: The information provided in this analysis should not be considered as financial advice. Investors should conduct their own research before making any investment decisions.