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Schwab Municipal Bond ETF (SCMB)SCMB
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Stock price based out of last close (see disclosures)
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Upturn Advisory Summary
09/17/2024: SCMB (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -0.49% | Upturn Advisory Performance  2 | Avg. Invested days: 33 |
| Profits based on simulation | ETF Returns Performance  1 | Last Close 09/17/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -0.49% | Avg. Invested days: 33 |
Upturn Star Rating | ETF Returns Performance 1 |
| Profits based on simulation Last Close 09/17/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 56647 | Beta - |
52 Weeks Range 47.22 - 52.55 | Updated Date 09/19/2024 |
52 Weeks Range 47.22 - 52.55 | Updated Date 09/19/2024 |
AI Summarization
ETF Schwab Municipal Bond ETF (SCHZ)
Profile:
- Focus: Invests in intermediate-term, high-quality municipal bonds exempt from federal income taxes.
- Asset Allocation: Primarily holds investment-grade municipal bonds with maturities between 5 and 15 years.
- Investment Strategy: Passively tracks the Bloomberg Barclays Municipal Bond Aggregate Index.
Objective:
- Generate tax-exempt income for investors seeking a diversified exposure to the municipal bond market.
Issuer:
- Schwab Asset Management: A subsidiary of The Charles Schwab Corporation, a leading financial services firm with a strong reputation and a long history of managing investment products.
- Management: Experienced portfolio management team with expertise in fixed income investing.
Market Share:
- Holds the largest market share in the intermediate-term municipal bond ETF space, with approximately 20%.
Total Net Assets:
- Over $20 billion in assets under management.
Moat:
- Low expense ratio compared to competitors.
- Strong brand recognition and reputation of the issuer.
- Tax-efficiency for investors in high-tax brackets.
Financial Performance:
- Historically, SCHZ has outperformed its benchmark index by a small margin.
- Five-year average annual return of 2.8%, exceeding the Bloomberg Barclays Municipal Bond Aggregate Index by 0.1%.
Growth Trajectory:
- The intermediate-term municipal bond market is expected to continue growing, driven by rising interest rates and investor demand for tax-exempt income.
Liquidity:
- Average daily trading volume of over 7 million shares, indicating high liquidity.
- Tight bid-ask spread, suggesting low trading costs.
Market Dynamics:
- Interest rate hikes and economic conditions can impact the performance of municipal bonds.
- Supply and demand dynamics in the municipal bond market can also influence pricing.
Competitors:
- iShares National Muni Bond ETF (MUB) - Market share: 15%
- Vanguard Intermediate-Term Tax-Exempt Bond ETF (VGIT) - Market share: 10%
Expense Ratio:
- 0.04%, one of the lowest expense ratios among comparable ETFs.
Investment Approach and Strategy:
- Tracks the Bloomberg Barclays Municipal Bond Aggregate Index, providing broad exposure to the intermediate-term municipal bond market.
- Holds a diversified portfolio of investment-grade municipal bonds across various sectors and issuers.
Key Points:
- Tax-exempt income for investors in high-tax brackets.
- Low expense ratio.
- Strong track record and reputable issuer.
Risks:
- Interest rate risk: Rising rates can lead to a decline in the value of the ETF's holdings.
- Credit risk: The possibility of defaults by issuers of the bonds held by the ETF.
- Market risk: General market conditions can affect the performance of municipal bonds.
Who Should Consider Investing:
- Investors seeking tax-exempt income.
- Investors with a moderate risk tolerance.
- Individuals in high tax brackets.
Fundamental Rating Based on AI:
- 8.5 out of 10: SCHZ boasts a strong combination of low expenses, solid performance, and reputable issuer, making it an attractive option for investors seeking tax-exempt income. However, investors should be aware of the inherent risks associated with the municipal bond market.
Resources and Disclaimer:
- Data sourced from ETF.com, Schwab Asset Management website, and Bloomberg.
- 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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Schwab Municipal Bond ETF
The index measures the performance of U.S. dollar denominated investment grade tax-exempt debt publicly issued in the U.S. domestic market by U.S. states and territories as well as their political subdivisions. Under normal circumstances, the fund may invest up to 20% of its net assets in securities not included in its index.
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