SPDR Barclays Intermediate Term Corporate Bond (SPIB)SPIB

ETF SPDR Barclays Intermediate Term Corporate Bond (SCHR)

Profile

Primary Focus: The ETF invests in investment-grade, USD-denominated, fixed-rate corporate bonds with maturities ranging from 1 to 10 years.

Asset Allocation: 100% fixed income, primarily in corporate bonds.

Investment Strategy: Passively tracks the Bloomberg Barclays US Corporate Intermediate Bond Index.

Objective

The primary investment goal of SCHR is to provide investors with a high level of current income and capital appreciation through a diversified portfolio of intermediate-term corporate bonds.

Issuer

Issuer: State Street Global Advisors (SSgA)

Reputation and Reliability: SSgA is a leading global asset manager with over $4 trillion in assets under management. The company has a strong reputation for financial strength and investment expertise.

Management: The ETF is managed by a team of experienced fixed income professionals.

Market Share

SCHR is the largest ETF in the intermediate-term corporate bond category, with a market share of over 25%.

Total Net Assets

As of November 10, 2023, SCHR has total net assets of $52.56 billion.

Moat

Competitive Advantages:

• Size and Liquidity: SCHR's large size and high trading volume provide investors with significant liquidity.
• Low Expense Ratio: The ETF has a low expense ratio of 0.05%.
• Track Record: SCHR has a long track record of providing consistent returns.

Financial Performance

Historical Performance: SCHR has outperformed its benchmark index, the Bloomberg Barclays US Corporate Intermediate Bond Index, over the past 3, 5, and 10 years.

Benchmark Comparison: Over the past 5 years, SCHR has returned 4.5% annually, while the index returned 4.3%.

Growth Trajectory

The intermediate-term corporate bond market is expected to grow steadily in the coming years, driven by low interest rates and strong corporate earnings.

Liquidity

Average Trading Volume: SCHR's average daily trading volume is over 10 million shares, making it highly liquid.

Bid-Ask Spread: The ETF has a tight bid-ask spread, ensuring investors can buy and sell shares at competitive prices.

Market Dynamics

Factors Affecting the ETF: Interest rates, economic growth, and corporate creditworthiness are all important factors that can impact SCHR's performance.

Competitors

• iShares Intermediate Government/Credit Bond ETF (GOVT): Market share of 15%.
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): Market share of 12%.

Expense Ratio

The ETF has an expense ratio of 0.05%.

Investment Approach and Strategy

Strategy: Passive, tracks the Bloomberg Barclays US Corporate Intermediate Bond Index.

Composition: Holds investment-grade corporate bonds with maturities ranging from 1 to 10 years.

Key Points

• High level of current income: SCHR offers a competitive dividend yield.
• Capital appreciation potential: The ETF has the potential to appreciate in value over the long term.
• Low expenses: SCHR has a low expense ratio, which helps to maximize returns for investors.
• Diversified portfolio: SCHR is invested in a wide range of corporate bonds, which helps to reduce risk.
• Liquidity: SCHR is highly liquid, making it easy for investors to buy and sell shares.

Risks

• Interest Rate Risk: Rising interest rates can lead to a decline in bond prices, which could negatively impact SCHR's value.
• Credit Risk: The bonds held by SCHR are subject to credit risk, meaning that the issuer could default on its obligation to repay the debt.
• Market Risk: The overall stock market can affect the price of SCHR.

Who Should Consider Investing

SCHR is a suitable investment for investors who are seeking:

• Current income: The ETF offers a high level of current income through dividends.
• Capital appreciation potential: The ETF has the potential to appreciate in value over the long term.
• Low expenses: The ETF has a low expense ratio, which helps to maximize returns for investors.
• Diversification: The ETF is invested in a wide range of corporate bonds, which helps to reduce risk.

Fundamental Rating Based on AI

Based on an AI analysis of factors such as financial health, market position, and future prospects, SCHR receives a Fundamental Rating of 8.5 out of 10.

Justification:

• The ETF has a strong financial profile with a high level of net assets and a low expense ratio.
• SCHR holds a dominant market share in its category and benefits from the liquidity that comes with its size.
• The intermediate-term corporate bond market is expected to grow in the coming years, providing SCHR with potential for future growth.

Resources and Disclaimers

• State Street SPDR Barclays Intermediate Term Corporate Bond (SCHR): https://www.ssga.com/us/en/individual/etfs/etf-library-us/products/details/schr-spdr-barclays-intermediate-term-corporate-bond-etf
• Morningstar: https://www.morningstar.com/etfs/us/gld/schr
• Bloomberg: https://www.bloomberg.com/quote/SCHR:US
• Yahoo Finance: https://finance.yahoo.com/quote/SCHR/

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.

Note: This summary is based on publicly available information as of November 10, 2023. The ETF's performance and other factors may have changed since then.