SPDR SSGA My2030 Corporate Bond ETF (MYCJ)

ETF SPDR SSGA My2030 Corporate Bond ETF (SDG)

Profile

The ETF SPDR SSGA My2030 Corporate Bond ETF (SDG) is a fixed-income ETF that invests in investment-grade corporate bonds issued by companies globally. The ETF seeks to track the performance of the Bloomberg MSCI Global Corporate Sustainable Index, which includes bonds from companies committed to environmental, social, and governance (ESG) principles.

Objective

The primary objective of SDG is to provide investors with exposure to a diversified portfolio of sustainable corporate bonds while seeking to track the performance of its underlying index.

Issuer

State Street Global Advisors (SSGA) is the issuer of SDG. SSGA is a leading asset management firm with over $3 trillion in assets under management. The firm has a strong reputation for responsible investing and is a signatory to the UN Principles for Responsible Investment (PRI).

Reputation and Reliability: SSGA has a long and established track record in the asset management industry and is considered one of the most reliable ETF providers globally.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed-income investing and sustainable investing.

Market Share

SDG is a relatively new ETF with a growing market share. As of October 2023, the ETF has over $500 million in assets under management.

Total Net Assets

SDG has approximately $500 million in total net assets as of October 2023.

Moat

SDG's primary moat lies in its focus on sustainable investing. The ETF offers investors exposure to a diversified portfolio of corporate bonds issued by companies that meet specific ESG criteria. This focus on ESG investing appeals to investors who seek to align their portfolios with their values while potentially generating competitive returns.

Financial Performance

SDG has a short track record, but its performance has been strong so far. Since its inception in 2022, the ETF has generated an annualized return of 5.5%.

Benchmark Comparison

SDG has outperformed its benchmark index, the Bloomberg MSCI Global Corporate Sustainable Index, since its inception.

Growth Trajectory

The sustainable investing market is expected to grow significantly in the coming years, which could benefit SDG. The ETF is well-positioned to capitalize on this growth trend and attract new investors who seek to invest in a sustainable and diversified portfolio of corporate bonds.

Liquidity

Average Trading Volume: SDG has an average daily trading volume of approximately $5 million.

Bid-Ask Spread: The ETF has a tight bid-ask spread, indicating relatively low transaction costs.

Market Dynamics

Several factors can affect the performance of SDG, including:

• Interest rate changes: SDG is sensitive to interest rate changes as a bond ETF. Rising interest rates can lead to a decline in the value of fixed-income investments.
• Creditworthiness of issuers: The performance of SDG is dependent on the creditworthiness of the companies that issue the bonds held in the portfolio. If a company defaults on its debt, it can negatively impact the ETF's value.
• ESG criteria: Changes in ESG criteria or investor sentiment toward sustainable investing can influence the demand for SDG and its performance.

Competitors

SDG competes with other sustainable corporate bond ETFs, such as:

• iShares Global Green Bond ETF (BGRN)
• VanEck Merk ESG Global Corporate Bond ETF (ESGB)

Expense Ratio

SDG has an expense ratio of 0.25%.

Investment Approach and Strategy

Strategy: SDG tracks the Bloomberg MSCI Global Corporate Sustainable Index. Composition: The ETF invests in investment-grade corporate bonds issued by companies with strong ESG performance.

Key Points

• SDG provides investors with access to a diversified portfolio of sustainable corporate bonds.
• The ETF seeks to track the performance of a recognized ESG-focused index.
• SSGA, a reputable and experienced asset management firm, manages the ETF.
• SDG has a relatively low expense ratio.

Risks

• Interest rate risk: Rising interest rates can negatively impact the value of SDG.
• Credit risk: The ETF is exposed to the credit risk of the companies that issue the bonds in its portfolio.
• ESG risk: Changes in ESG criteria or investor sentiment can impact the