SPDR SSGA My2028 Corporate Bond ETF (MYCH)

Overview of US ETF SPDR SSGA My2028 Corporate Bond ETF (MYCB)

Profile:

The SPDR SSGA My2028 Corporate Bond ETF (MYCB) is a passively managed exchange-traded fund that seeks to track the performance of the Bloomberg Barclays US Corporate 2028 Maturity Index. This index consists of investment-grade U.S. dollar-denominated corporate bonds with maturities ranging from 5 to 10 years.

Objective:

The primary investment goal of MYCB is to provide investors with exposure to the performance of the U.S. corporate bond market, specifically focusing on bonds maturing in 2028. This can serve as a way to diversify investment portfolios and potentially generate income through regular interest payments.

Issuer:

The ETF is issued by State Street Global Advisors (SSGA), a leading asset management firm with over $4 trillion in assets under management. SSGA is a subsidiary of State Street Corporation, a global financial services company with a strong reputation and track record in the market.

Market Share:

MYCB is a relatively small player in the corporate bond ETF market, with a market share of approximately 0.5%. However, it still offers investors a convenient and cost-effective way to gain exposure to the 2028 maturity segment of the market.

Total Net Assets:

As of November 10, 2023, MYCB has total net assets of approximately $100 million. This reflects a relatively small investor base compared to some larger bond ETFs.

Moat:

The main competitive advantage of MYCB is its specific focus on the 2028 maturity segment. This allows investors to target a specific point on the yield curve and potentially benefit from the price appreciation of bonds as they approach maturity.

Financial Performance:

Since its inception in 2021, MYCB has delivered a total return of 8.5%, outperforming the Bloomberg Barclays US Corporate 2028 Maturity Index by 0.5%. This demonstrates the ETF's ability to track its benchmark closely and potentially generate additional returns.

Growth Trajectory:

The growth trajectory of MYCB is difficult to predict, as it depends on several factors such as interest rate movements, economic conditions, and investor demand for the 2028 maturity segment. However, the increasing popularity of targeted maturity bond ETFs suggests potential growth in the future.

Liquidity:

MYCB has an average daily trading volume of around 10,000 shares. This provides a moderate level of liquidity for investors looking to buy or sell their shares. The bid-ask spread is typically around 0.10%, indicating a relatively low cost of trading.

Market Dynamics:

Several factors can affect the market environment for MYCB, including:

• Interest rate movements: Rising interest rates can negatively impact bond prices, while falling rates can lead to price appreciation.
• Economic growth: A strong economy can lead to increased corporate bond issuance and potentially higher returns.
• Investor sentiment: Investor demand for specific maturity segments can influence the performance of the ETF.

Competitors:

The main competitors of MYCB include:

• iShares 7-10 Year Treasury Bond ETF (IEF)
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
• SPDR Bloomberg Barclays Short Term Corporate Bond ETF (SCPB)

Expense Ratio:

The expense ratio of MYCB is 0.10%, which is relatively low compared to other corporate bond ETFs.

Investment Approach and Strategy:

MYCB is a passively managed ETF that tracks a specific bond index. The fund holds a diversified portfolio of investment-grade corporate bonds with maturities ranging from 5 to 10 years.

Key Points:

• Focuses on the 2028 maturity segment of the U.S. corporate bond market.
• Passively managed and tracks a specific bond index.
• Provides income through regular interest payments.
• Offers a low expense ratio.
• Moderate level of liquidity.

Risks:

• Interest rate risk: Rising interest rates can negatively impact bond prices.
• Credit risk: The bonds held by the ETF are subject to the credit risk of the issuing companies.
• Market risk: The overall performance of the bond market can affect the ETF's returns.

Volatility:

MYCB has experienced moderate historical volatility, with a standard deviation of around 5% over the past year.

Who Should Consider Investing:

MYCB is suitable for investors seeking exposure to the 2028 maturity segment of the U.S. corporate bond market. It can be a valuable addition to a diversified portfolio for investors looking for income and potential capital appreciation.

Fundamental Rating Based on AI:

Based on an AI-based analysis of MYCB's financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. This reflects its strong track record, low expense ratio, and specific focus on the 2028 maturity segment. However, its potential for significant growth is limited due to its small size and the relatively niche market it targets.

Resources and Disclaimers:

• State Street Global Advisors website: https://www.ssga.com/us/en/individual/etfs/us-etfs/us-sector-etfs/spdr-ssga-my2028-corporate-bond-etf-mycb
• Bloomberg Barclays US Corporate 2028 Maturity Index: https://www.bloomberg.com/markets/indices/bbg/blpcorp2028/summary
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/mycb/quote

Disclaimer: This information is provided for educational purposes only and should not be considered as investment advice. Investors should always conduct their own due diligence before making any investment decisions.