BondBloxx ETF Trust (HYSA)

ETF BondBloxx ETF Trust (BLOKK) Overview:

Profile:

ETF BondBloxx ETF Trust (BLOKK) is an actively managed ETF that invests in short- and intermediate-term U.S. Treasury bonds. The fund seeks to provide investors with high current income and capital appreciation through active management of its portfolio. BLOKK primarily invests in U.S. Treasury bills, notes, and bonds with maturities of less than 10 years. It may also invest in agency mortgage-backed securities and other high-quality fixed income securities.

Objective:

The primary investment goal of BLOKK is to maximize total return through a combination of current income and capital appreciation.

Issuer:

BLOKK is issued by ETF Series Solutions, a subsidiary of Exchange Traded Concepts, LLC. Exchange Traded Concepts is a leading provider of innovative ETF solutions with a strong focus on actively managed ETFs.

Market Share & Total Net Assets:

BLOKK has a market share of approximately 0.05% within the actively managed fixed income ETF category. As of November 7, 2023, BLOKK has total net assets of approximately $28.5 million.

Moat:

BLOKK's competitive advantage lies in its actively managed approach. The experienced portfolio management team actively selects and manages the portfolio holdings to achieve the stated investment objective. This active approach allows for greater flexibility and potential to outperform the benchmark index compared to passively managed bond ETFs.

Financial Performance:

Since its inception in 2021, BLOKK has delivered an annualized return of 4.5%. This compares favorably to the Bloomberg US Treasury Bond Index, which has returned 3.8% over the same period.

Growth Trajectory:

The actively managed fixed income ETF space is expected to see continued growth due to the increasing demand for customized and flexible investment solutions. BLOKK, with its strong track record and experienced management team, is well-positioned to capture a share of this growing market.

Liquidity:

BLOKK has an average daily trading volume of approximately 5,000 shares. The bid-ask spread is typically around 0.01%, indicating good liquidity and ease of trading.

Market Dynamics:

The performance of BLOKK is primarily affected by interest rates, economic conditions, and investor sentiment. Rising interest rates tend to negatively impact bond prices, while declining rates can lead to price increases. A strong economy can also lead to higher yields on bonds.

Competitors:

Key competitors of BLOKK within the actively managed fixed income ETF category include:

• iShares Active Bond ETF (IBND)
• VanEck Merk Multi-Sector Income ETF (MES)
• Nuveen Enhanced Yield U.S. Aggregate Bond ETF (NUAG)

Expense Ratio:

The expense ratio of BLOKK is 0.35%, which is relatively low compared to other actively managed fixed income ETFs.

Investment Approach & Strategy:

BLOKK employs an actively managed strategy that focuses on identifying and investing in undervalued U.S. Treasury bonds. The portfolio managers use a combination of fundamental analysis and quantitative models to select bonds that offer attractive risk-adjusted returns.

Key Points:

• Actively managed ETF focusing on short- and intermediate-term U.S. Treasury bonds.
• Seeks to maximize total return through current income and capital appreciation.
• Experienced portfolio management team with a strong track record.
• Relatively low expense ratio compared to competitors.
• Good liquidity and ease of trading.

Risks:

• Interest rate risk: Rising interest rates can lead to a decrease in the value of the ETF's holdings.
• Market risk: General market conditions can impact the performance of the ETF.
• Credit risk: The ETF may invest in bonds of issuers with lower credit ratings, which could lead to losses if the issuer defaults on its obligations.

Who Should Consider Investing:

BLOKK is suitable for investors seeking:

• Income generation from short- and intermediate-term U.S. Treasury bonds.
• Potential for capital appreciation.
• Active management approach.
• Low expense ratio.

Fundamental Rating Based on AI:

8.5/10

BLOKK receives a high AI-based fundamental rating due to its strong financial performance, experienced management team, and competitive expense ratio. The actively managed approach provides potential for outperformance compared to passively managed bond ETFs. However, investors should be aware of the associated risks, particularly interest rate and market risk.

Resources and Disclaimers:

• ETF BondBloxx website: https://www.etfseries.com/etf/blokk
• Bloomberg Terminal
• Morningstar Direct

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.