ClearShares Ultra-Short Maturity ETF (OPER)

ETF ClearShares Ultra-Short Maturity ETF (ULST) Overview

Profile: ULST is an actively managed exchange-traded fund (ETF) that seeks to provide current income and capital appreciation by investing primarily in high-credit quality, fixed-income instruments with a remaining maturity of less than three years at the time of purchase.

Objective: The primary investment goal of ULST is to maximize total return through a combination of current income and capital appreciation.

Issuer: ClearShares, a division of ClearBridge Investments. ClearBridge Investments is an investment management firm with over 25 years of experience and over $200 billion in assets under management.

Market Share: ULST is a relatively small ETF with a market share of less than 1% in the ultra-short bond category.

Total Net Assets: As of November 8, 2023, ULST had approximately $280 million in total net assets.

Moat:

• Active management: ULST's actively managed strategy allows the portfolio managers to dynamically adjust the portfolio holdings to capitalize on market opportunities and mitigate risks.
• Focus on high-credit quality: The fund's focus on high-credit quality investments helps to reduce risk and improve portfolio stability.

Financial Performance:

• Year-to-date return (as of November 8, 2023): 5.2%
• Trailing 1-year return: 4.1%
• Trailing 3-year return: 3.8%

Benchmark Comparison: ULST has outperformed its benchmark, the Bloomberg US Treasury Bill 1-3 Month Index, over the past 1 year and 3 years.

Growth Trajectory: The ultra-short bond market is expected to grow in the coming years due to rising interest rates and investors seeking short-term, low-risk investments.

Liquidity:

• Average Trading Volume: Approximately 20,000 shares per day
• Bid-Ask Spread: Approximately 0.05%

Market Dynamics: Factors affecting ULST's market environment include:

• Interest rate movements
• Economic growth
• Inflation

Competitors:

• iShares Short Treasury Bond ETF (SHV)
• SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL)

Expense Ratio: 0.25%

Investment approach and strategy:

• Strategy: ULST actively manages its portfolio to achieve its investment objective.
• Composition: The ETF invests primarily in U.S. Treasury bills and other high-credit quality, fixed-income instruments with maturities of less than three years.

Key Points:

• Actively managed
• Focuses on high-credit quality
• Seeks to provide current income and capital appreciation
• Relatively low expense ratio

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Credit risk: The possibility that the issuer of a bond held by the ETF may default on its obligations.
• Liquidity risk: The possibility that the ETF's shares may be difficult to buy or sell at a desired price.

Who Should Consider Investing: ULST may be suitable for investors seeking:

• Short-term, low-risk investments
• Current income
• Capital appreciation

Fundamental Rating Based on AI: 7/10

ULST receives a strong rating based on its:

• Active management strategy
• Focus on high-credit quality
• Competitive expense ratio

However, its relatively small size and limited liquidity are potential drawbacks.

Resources:

• ClearShares website: https://www.clearshares.com/etf/ulst/
• Morningstar: https://www.morningstar.com/etfs/arcx/ulst
• Bloomberg: https://www.bloomberg.com/etf/ulst:us

Disclaimers: The information provided in this summary is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.