SPDR SSGA My2033 Corporate Bond ETF (MYCM)

Overview

The SPDR SSGA My2033 Corporate Bond ETF (TDTT) is a target maturity corporate bond ETF that aims to provide investment results that correspond to the performance of U.S. dollar-denominated investment grade corporate bonds maturing in the year 2033. It focuses on corporate bonds and seeks to provide a defined maturity date, making it suitable for investors with specific income or liability needs around the year 2033.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable asset manager with a long track record in the ETF market.

Management Expertise

SSGA has a team of experienced professionals managing its fixed-income ETFs, including those with expertise in corporate bond markets.

Goal

The primary investment goal of TDTT is to seek to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg U.S. Corporate Bond 10+ Year Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the performance of the Bloomberg U.S. Corporate Bond 10+ Year Index.

Composition The ETF primarily holds U.S. dollar-denominated, investment-grade corporate bonds with maturities concentrated around the year 2033.

Market Share: TDTT's market share in the target maturity corporate bond ETF sector is moderate and continually evolving, as the ETF is relatively new.

Total Net Assets (AUM): 120129408

Key Competitors

• iShares iBonds Dec 2033 Term Corporate ETF (IBDN)

Competitive Landscape

The target maturity corporate bond ETF market is relatively concentrated. TDTT competes with larger and more established ETFs like IBDN. TDTT's advantage could be a slightly different expense ratio or tracking error compared to its competitors, however, IBDN has first mover advantage and significantly larger AUM.

Historical Performance: Historical performance data for TDTT is limited due to its recent inception. Performance should be compared to the Bloomberg U.S. Corporate Bond 10+ Year Index.

Benchmark Comparison: TDTT's performance should be closely compared to the Bloomberg U.S. Corporate Bond 10+ Year Index to assess its tracking effectiveness.

Expense Ratio: 0.06

Average Trading Volume

TDTT's average trading volume is moderate and should be monitored as the ETF matures.

Bid-Ask Spread

The bid-ask spread for TDTT should be monitored to assess the cost of trading, particularly during periods of market volatility.

Market Environment Factors

TDTT is affected by factors such as interest rate changes, credit spreads, and overall economic conditions affecting the corporate bond market.

Growth Trajectory

TDTT's growth trajectory is dependent on investor demand for target maturity corporate bond ETFs and its ability to effectively track its benchmark.

Competitive Edge

TDTT's competitive advantage is being part of the State Street SPDR family of ETFs which has a large distribution network and a trusted brand. The ETF offers a defined maturity target, appealing to investors seeking to match liabilities. The ETF's lower expense ratio, when compared to its competitors, can also be a competitive advantage. However, as a relatively newer entrant, it needs to build AUM and trading volume to compete effectively.

Volatility

TDTT's volatility is tied to the underlying corporate bond market and is influenced by interest rate sensitivity and credit risk.

Market Risk

TDTT is subject to market risk associated with corporate bonds, including credit risk (risk of default) and interest rate risk (risk of falling bond values due to rising interest rates).

Ideal Investor Profile

The ideal investor for TDTT is one seeking predictable income and principal repayment at a specific future date (2033), who also has a moderate risk tolerance.

Market Risk

TDTT is best suited for long-term investors who want to match future liabilities or have a defined investment horizon and understand the risks associated with corporate bonds.

The SPDR SSGA My2033 Corporate Bond ETF (TDTT) offers exposure to investment-grade corporate bonds maturing in 2033. Managed by State Street, it aims to replicate the performance of the Bloomberg U.S. Corporate Bond 10+ Year Index. While it's relatively new, it can appeal to investors with specific liability-matching needs around 2033, though it faces stiff competition from larger, more established ETFs like IBDN. Investors should carefully consider its liquidity and trading volume before investing.

• IBDN
• IBDM
• IBDL

Data Sources:

• SSGA Website
• Bloomberg
• ETF.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.