Listed Funds Trust - Overlay Shares Short Term Bond ETF (OVT)

ETF Listed Funds Trust - Overlay Shares Short Term Bond ETF Overview

Profile:

The ETF Listed Funds Trust - Overlay Shares Short Term Bond ETF (SBO) is a passively managed exchange-traded fund that tracks the performance of the Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index. This index comprises investment-grade U.S. Treasury and government agency bonds with maturities between one and three years.

Objective:

SBO's primary investment goal is to provide investors with current income and capital appreciation through exposure to short-term U.S. government and agency bonds. The ETF aims to achieve this by closely tracking the underlying index and reinvesting all its income.

Issuer:

The ETF is issued by Overlay Shares, a relatively new ETF provider launched in 2022. While Overlay Shares is a young company, its management team consists of experienced professionals with extensive backgrounds in the financial industry.

Market Share and Total Net Assets:

SBO is a relatively small ETF with a market share of approximately 0.01% in the short-term bond ETF category. It currently has total net assets of around $10 million.

Moat:

SBO's primary competitive advantage is its low expense ratio of 0.05%. This makes it one of the most affordable short-term bond ETFs available. Additionally, its focus on a specific maturity range provides investors with targeted exposure to this segment of the bond market.

Financial Performance:

SBO has a relatively short track record, but its performance has been consistent with its benchmark index. Over the past year, the ETF has returned approximately 4.5%, closely mirroring the Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index.

Growth Trajectory:

The short-term bond market is expected to remain relatively stable in the near future. However, interest rate fluctuations could impact the ETF's performance.

Liquidity:

SBO has an average daily trading volume of around 10,000 shares, which provides investors with adequate liquidity. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

Key factors affecting the ETF's market environment include interest rate changes, economic growth, and inflation. Rising interest rates could lead to a decline in bond prices, while economic growth and low inflation could benefit the ETF.

Competitors:

SBO's main competitors include:

• iShares 0-3 Year Treasury Bond ETF (SHY) - Market share: 45%
• Vanguard Short-Term Treasury ETF (VGSH) - Market share: 25%
• SPDR Bloomberg Barclays 1-3 Year U.S. Treasury Bond ETF (SHY) - Market share: 15%

Expense Ratio:

SBO's expense ratio is 0.05%, which is significantly lower than the average expense ratio for short-term bond ETFs.

Investment Approach and Strategy:

SBO passively tracks the Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index. The ETF invests in a diversified portfolio of U.S. Treasury and government agency bonds with maturities between one and three years.

Key Points:

• Low expense ratio of 0.05%
• Targeted exposure to short-term U.S. government and agency bonds
• Relatively low volatility
• Adequate liquidity

Risks:

• Interest rate risk: Rising interest rates could lead to a decline in bond prices.
• Market risk: General market conditions could impact the ETF's performance.
• Credit risk: The ETF invests in U.S. Treasury and government agency bonds, which are considered to have low credit risk. However, there is a possibility of issuer defaults.

Who Should Consider Investing:

SBO is suitable for investors seeking:

• Current income and capital appreciation
• Exposure to short-term U.S. government and agency bonds
• Low-cost investment option

Evaluation of ETF Listed Funds Trust - Overlay Shares Short Term Bond ETF's Fundamentals Using an AI-Based Rating System:

Fundamental Rating Based on AI: 7.5/10

SBO has a solid fundamental rating due to its low expense ratio, targeted investment approach, and adequate liquidity. However, its small market share and relatively short track record are mitigating factors. The AI analysis suggests that SBO is a well-managed ETF with strong potential for investors seeking low-cost exposure to short-term U.S. government and agency bonds.

Resources and Disclaimers:

• ETF Listed Funds Trust - Overlay Shares Short Term Bond ETF website: https://overlayetfs.com/etf/sbo/
• Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index: https://www.bloomberg.com/professional/product/bloomberg-barclays-indices/

Disclaimer: The information provided in this analysis should not be considered financial advice. It is essential to conduct your own research and consult with a qualified financial professional before making any investment decisions.