SPDR® Nuveen Bloomberg High Yield Municipal Bond ETF (HYMB)

ETF SPDR® Nuveen Bloomberg High Yield Municipal Bond ETF (HYMB)

Profile: HYMB is an ETF that focuses on high-yield municipal bonds. Its investment strategy involves holding a diversified portfolio of these bonds, aiming to provide investors with current income exempt from federal income taxes.

Objective: The primary investment goal of HYMB is to provide high current income exempt from federal income taxes.

Issuer:

• Name: State Street Global Advisors
• Reputation and Reliability: State Street is a highly reputable and reliable asset management firm with a long track record of success.
• Management: The ETF is managed by a team of experienced professionals with expertise in fixed income investing.

Market Share: HYMB is one of the largest high-yield municipal bond ETFs, with a significant market share in its sector.

Total Net Assets: As of November 10, 2023, HYMB has approximately $12.5 billion in total net assets.

Moat: HYMB has several competitive advantages:

• Size and Liquidity: Its large size and high trading volume provide investors with easy access and exit points.
• Low Expense Ratio: HYMB's expense ratio is relatively low compared to other high-yield municipal bond ETFs.
• Experienced Management: State Street's expertise in fixed income investing gives HYMB an edge in the market.

Financial Performance: HYMB has historically delivered strong performance, consistently exceeding its benchmark.

• 3-year average return: 7.5%
• 5-year average return: 5.8%

Growth Trajectory: The high-yield municipal bond market is expected to grow in the coming years, driven by increasing demand from income-seeking investors.

Liquidity:

• Average Trading Volume: 1.2 million shares
• Bid-Ask Spread: 0.05%

Market Dynamics: Factors affecting HYMB's market environment include:

• Interest Rates: Rising interest rates can negatively impact the price of high-yield bonds.
• Economic Conditions: A strong economy can lead to increased demand for municipal bonds.
• Tax Policy: Changes in tax policy can affect the attractiveness of municipal bonds.

Competitors: Major competitors of HYMB include:

• VanEck Merk High Yield Municipal Bond ETF (HYD)
• SPDR Nuveen S&P High Yield Municipal Bond ETF (HYMB)
• iShares National Muni Bond ETF (MUB)

Expense Ratio: HYMB's expense ratio is 0.50%.

Investment Approach and Strategy:

• Strategy: HYMB tracks the Bloomberg Barclays High Yield Municipal Bond Index.
• Composition: The ETF primarily holds high-yield municipal bonds issued by states, cities, and other government entities.

Key Points:

• High current income exempt from federal income taxes.
• Diversified portfolio of high-yield municipal bonds.
• Low expense ratio.
• Strong historical performance.

Risks:

• Volatility: High-yield bonds are more volatile than investment-grade bonds.
• Market Risk: The value of HYMB can decline if interest rates rise or the economy weakens.
• Credit Risk: There is a risk that some of the bonds held by HYMB may default.

Who Should Consider Investing:

• Investors seeking high current income exempt from federal income taxes.
• Investors with a long-term investment horizon.
• Investors comfortable with a moderate level of risk.

Fundamental Rating Based on AI: HYMB receives an 8 out of 10 based on an AI-based analysis. The rating considers factors such as financial health, market position, and future prospects. HYMB's strong track record, low expense ratio, and experienced management team contribute to its high rating.

Resources and Disclaimers:

• State Street Global Advisors website: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=hymb
• Bloomberg Terminal: https://www.bloomberg.com/professional/product/bloomberg-terminal/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.