ClearShares Ultra-Short Maturity ETF (OPER)

ETF ClearShares Ultra-Short Maturity ETF (ULST)

Profile:

ClearShares Ultra-Short Maturity ETF (ULST) is an actively managed exchange-traded fund that invests primarily in short-term U.S. government and agency bonds with maturities of less than three years. The ETF aims to provide investors with a high level of current income and capital preservation.

Objective:

The primary investment goal of ULST is to maximize current income while preserving capital. This is achieved by investing in a portfolio of high-quality, short-term U.S. government and agency bonds.

Issuer:

ClearShares is an exchange-traded fund (ETF) provider that offers a variety of actively managed and index-tracking ETFs. The company is a subsidiary of ClearBridge Investments, a global asset manager with over $700 billion in assets under management.

Market Share:

ULST is a relatively small ETF in the short-term bond market, with a market share of less than 1%.

Total Net Assets:

As of October 27, 2023, ULST has approximately $450 million in total net assets.

Moat:

ULST's primary competitive advantage is its active management approach. The ETF's portfolio managers have extensive experience in the fixed income market and can actively adjust the portfolio to take advantage of market opportunities.

Financial Performance:

Over the past three years, ULST has returned an annualized 1.5%, outperforming its benchmark index, the Bloomberg Barclays US Treasury Bill 1-3 Month Index, which returned an annualized 0.8%.

Growth Trajectory:

The outlook for short-term bond ETFs is positive, as rising interest rates are expected to provide support for yields. ULST's active management approach could allow it to outperform its peers in this environment.

Liquidity:

ULST is a relatively liquid ETF, with an average daily trading volume of over $1 million. The bid-ask spread is typically around 0.02%.

Market Dynamics:

The primary factors affecting ULST's market environment are interest rates and economic growth. Rising interest rates are generally positive for ULST, as they support higher yields. However, economic weakness can lead to increased volatility in the bond market.

Competitors:

ULST's main competitors are other short-term bond ETFs, such as the iShares Short Treasury Bond ETF (SHV) and the Vanguard Short-Term Treasury ETF (VGSH).

Expense Ratio:

ULST has an expense ratio of 0.25%.

Investment Approach and Strategy:

ULST's investment strategy is to invest in a portfolio of high-quality, short-term U.S. government and agency bonds. The ETF's portfolio managers actively manage the portfolio to maximize current income and capital preservation.

Key Points:

• Actively managed ETF with a focus on short-term U.S. government and agency bonds
• High level of current income and capital preservation
• Experienced portfolio management team
• Outperformed its benchmark index over the past three years
• Relatively liquid ETF with a low expense ratio

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Market risk: The ETF's value can fluctuate with changes in the overall bond market.
• Credit risk: The ETF's holdings are subject to credit risk, meaning that the issuer of a bond could default on its debt.

Who Should Consider Investing:

ULST is a suitable investment for investors who are looking for a high level of current income and capital preservation. The ETF is also appropriate for investors who are seeking an actively managed exposure to the short-term bond market.

Fundamental Rating Based on AI:

Based on an AI-based rating system, ULST receives a 7 out of 10 for its fundamentals. This rating is based on the following factors:

• Financial health: The ETF has a strong financial profile, with a low expense ratio and a solid track record of performance.
• Market position: ULST has a competitive advantage in the short-term bond market due to its active management approach.
• Future prospects: The outlook for ULST is positive, as rising interest rates are expected to support yields.

Resources and Disclaimers:

• ClearShares website: https://www.clearshares.com/etf/ulst/
• ETF.com: https://www.etf.com/etfanalytics/product/ULST
• Morningstar: https://www.morningstar.com/etfs/xnas/ulst

Disclaimer: This information is for general knowledge and educational purposes only and does not constitute investment advice. Please consult with a financial advisor before making any investment decisions.