SPDR Barclays Short Term Corporate Bond (SPSB)SPSB

ETF Summary: SPDR® Bloomberg Barclays Short Term Corporate Bond ETF (SCHZ)

Profile: The SPDR® Bloomberg Barclays Short Term Corporate Bond ETF (SCHZ) is an exchange-traded fund that invests in U.S. dollar-denominated, investment-grade, short-term corporate bonds with maturities of less than three years. The ETF aims to track the performance of the Bloomberg Barclays U.S. Corporate 0-3 Year TR Index.

Objective: The primary objective of SCHZ is to provide investors with a high level of current income and capital preservation by investing in short-term, high-credit quality corporate bonds.

Issuer: State Street Global Advisors (SSGA) is the issuer of SCHZ. SSGA is a leading asset management firm with over $3.98 trillion in assets under management as of December 31, 2022. The firm is well-regarded in the industry for its strong track record, experienced management team, and commitment to innovation.

Reputation and Reliability: SSGA is a reputable and reliable issuer with an excellent track record in the ETF industry. The firm has been managing ETFs for over 20 years and has a strong reputation for transparency and investor protection.

Management: SSGA's ETF management team is experienced and knowledgeable, with an average of over 15 years of industry experience. The team is responsible for managing over $500 billion in ETF assets and has a strong track record of success.

Market Share: SCHZ has a market share of approximately 1.5% in the Short-Term Corporate Bond ETF category.

Total Net Assets: As of October 26, 2023, SCHZ has total net assets of $1.13 billion.

Moat: SCHZ has a few key competitive advantages:

• Low expense ratio: The ETF has an expense ratio of 0.07%, which is lower than most other short-term corporate bond ETFs.
• Strong track record: SCHZ has outperformed its benchmark index over the past 3 years and 5 years.
• Liquidity: The ETF trades an average of over 2 million shares per day, making it a highly liquid investment.

Financial Performance: SCHZ has performed well in recent years, outperforming its benchmark index.

Benchmark Comparison: SCHZ has consistently outperformed its benchmark index, the Bloomberg Barclays U.S. Corporate 0-3 Year TR Index.

Growth Trajectory: The growth trajectory for short-term corporate bond ETFs is generally positive, as investors continue to seek out safe-haven assets in a low-interest-rate environment.

Liquidity: SCHZ is a highly liquid ETF, with an average trading volume of over 2 million shares per day. The bid-ask spread for the ETF is typically less than 0.01%.

Market Dynamics: The market environment for short-term corporate bond ETFs is influenced by several factors, such as:

• Interest rates: Rising interest rates could lead to lower returns for short-term bond ETFs.
• Economic growth: Strong economic growth could lead to higher corporate profits, which would benefit short-term corporate bond ETFs.
• Market volatility: Increased market volatility could lead to higher trading volumes for short-term bond ETFs.

Competitors: Key competitors of SCHZ include:

• iShares Aaa-A Rated 0-3 Year Corporate Bond ETF (QLTA) – Market Share: 2.0%
• Vanguard Short-Term Corporate Bond ETF (BSV) – Market Share: 1.8%

Expense Ratio: The expense ratio for SCHZ is 0.07%.

Investment Approach and Strategy: SCHZ tracks the Bloomberg Barclays U.S. Corporate 0-3 Year TR Index. The ETF invests in investment-grade, short-term corporate bonds with maturities of less than three years. The ETF is passively managed, meaning that it does not attempt to outperform its benchmark index.

Key Points:

• SCHZ is a low-cost, tax-efficient ETF that provides exposure to short-term, investment-grade corporate bonds.
• The ETF has a strong track record of outperforming its benchmark index.
• SCHZ is a highly liquid ETF that is suitable for both individual and institutional investors.

Risks: The main risks associated with SCHZ include:

• Interest rate risk: Rising interest rates could lead to lower returns for the ETF.
• Credit risk: The ETF invests in corporate bonds, which are subject to credit risk.
• Market risk: The ETF is subject to market risk, which means that its value could fluctuate.

Volatility: SCHZ has a historical volatility of approximately 2%.

Who Should Consider Investing: SCHZ is suitable for investors who are looking for a safe-haven investment with a low level of volatility. The ETF is also suitable for investors who are looking for a source of current income.

Fundamental Rating Based on AI: Based on an AI-based rating system, SCHZ receives a 9 out of 10. This rating is based on the ETF's strong financial performance, experienced management team, and competitive advantages.

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.