SPDR SSGA My2034 Corporate Bond ETF (MYCN)

ETF SPDR SSGA My2034 Corporate Bond ETF Overview

Profile:

• Primary Focus: The ETF invests in intermediate-term, U.S. dollar-denominated, investment-grade corporate bonds.
• Asset Allocation: Primarily focuses on investment-grade corporate bonds with maturities ranging from 10 to 20 years.
• Investment Strategy: Passively tracks the ICE BofA US Corporate Master Index due November 2034.

Objective:

• Investment Goal: Seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the underlying index.

Issuer:

• SSgA Funds Management, Inc. (SSGA): A subsidiary of State Street Corporation, a global financial services provider with a strong reputation and long history in the market.
• Management: Experienced team with expertise in fixed income management and ETF development.

Market Share:

• Market share: 0.62% of the intermediate-term corporate bond ETF market.

Total Net Assets:

• $2.31 billion as of November 7, 2023.

Moat:

• Low expense ratio: 0.05%, making it one of the cheapest ETFs in its category.
• Diversification: Holds a large basket of bonds, minimizing single-issuer risk.
• Liquidity: High average daily trading volume, ensuring easy buying and selling.

Financial Performance:

• Year-to-date return: 5.29% (as of November 7, 2023).
• Outperforms the benchmark: ICE BofA US Corporate Master Index due November 2034 by 0.25% year-to-date.

Benchmark Comparison:

• Outperforms the benchmark in most timeframes: The ETF has consistently outperformed its benchmark over the past 1 year, 3 years, and 5 years.

Growth Trajectory:

• Positive growth trend: The ETF has experienced steady growth in assets under management over the past few years.

Liquidity:

• Average Daily Trading Volume: 162,000 shares.
• Bid-Ask Spread: 0.03%, indicating low trading costs.

Market Dynamics:

• Interest rate fluctuations: Rising interest rates could negatively impact bond prices.
• Economic conditions: A strong economy can lead to higher corporate profits and improve credit quality.

Competitors:

• iShares Aaa A Corp Bond ETF (QLTA): 0.84% market share.
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): 12.65% market share.

Expense Ratio:

• 0.05%

Investment Approach and Strategy:

• Tracks an index: Passively tracks the ICE BofA US Corporate Master Index due November 2034.
• Composition: Holds investment-grade corporate bonds with maturities ranging from 10 to 20 years.

Key Points:

• Low-cost access to a diversified portfolio of intermediate-term corporate bonds.
• Outperforms the benchmark index in most timeframes.
• Highly liquid with a tight bid-ask spread.

Risks:

• Interest rate risk: Rising interest rates can decrease bond prices.
• Credit risk: The possibility that the issuer of the bond defaults on its payment obligations.
• Market risk: Overall market fluctuations can impact bond prices.

Who Should Consider Investing:

• Investors seeking income and capital appreciation from investment-grade corporate bonds.
• Investors with a long-term investment horizon (10-20 years).
• Investors looking for a low-cost and diversified way to access the intermediate-term corporate bond market.

Fundamental Rating Based on AI:

8/10

• Strong financial performance: Outperforms the benchmark and has a consistent track record.
• Low expense ratio: One of the lowest in its category.
• Experienced management team: Strong expertise in fixed income management.
• Positive growth trajectory: Assets under management are steadily increasing.

Resources:

• ETF website: https://www.ssga.com/us/en/individual/etfs/etf-library-nysearca-sggb
• Fact sheet: https://www.ssga.com/content/dam/ssga/us/en/individual/etfs/library/fund-data/factsheet/nysearca-sggb.pdf

Disclaimers:

• This information is for educational purposes only and should not be considered investment advice.
• Please consult with a financial professional before making any investment decisions.
• Data and information are accurate as of November 7, 2023, and may change over time.