SPDR Portfolio Intermediate Term Treasury (SPTI)

ETF SPDR Portfolio Intermediate Term Treasury (SCHR) Overview

Profile:

ETF SPDR Portfolio Intermediate Term Treasury (SCHR) is an exchange-traded fund (ETF) designed to track the performance of the Bloomberg Barclays U.S. Treasury Intermediate Index. This index focuses on U.S. Treasury bonds with maturities between 1 and 10 years. The ETF invests in a broad range of U.S. Treasury notes and bonds, offering investors exposure to the intermediate-term segment of the U.S. Treasury market.

Objective:

The primary investment goal of SCHR is to provide investors with current income and capital appreciation through investment in U.S. Treasury bonds. It aims to achieve this by closely tracking the performance of its underlying index.

Issuer:

State Street Global Advisors (SSGA):

• Reputation and Reliability: SSGA is a leading asset management firm with a long and successful track record. It manages over $4.1 trillion in assets worldwide and has earned a solid reputation for its expertise and reliability.

• Management: SSGA has a team of experienced and qualified portfolio managers who oversee the construction and management of SCHR.

Market Share:

SCHR is one of the largest intermediate-term Treasury ETFs in the market, with a market share of approximately 20%.

Total Net Assets:

As of November 2023, SCHR has total net assets of over $12 billion.

Moat:

• Low-cost structure: SCHR has a low expense ratio of 0.03%, making it one of the most affordable intermediate-term Treasury ETFs available.

• Liquidity: SCHR is a highly liquid ETF with an average daily trading volume of over 10 million shares.

• Diversification: SCHR offers exposure to a wide range of U.S. Treasury bonds, providing investors with built-in diversification and risk reduction.

Financial Performance:

Over the past five years, SCHR has delivered a total return of approximately 4.5% per year. This performance is in line with its benchmark index, the Bloomberg Barclays U.S. Treasury Intermediate Index.

Growth Trajectory:

The intermediate-term Treasury market is expected to remain steady, with moderate growth potential. As a result, SCHR is likely to continue to track the performance of its underlying index and offer investors a stable source of income and capital appreciation.

Liquidity:

• Average Trading Volume: SCHR has an average daily trading volume of over 10 million shares, making it a highly liquid ETF.

• Bid-Ask Spread: The bid-ask spread for SCHR is typically very narrow, indicating low trading costs.

Market Dynamics:

Factors that can affect the market environment for SCHR include changes in interest rates, economic conditions, and investor sentiment.

Competitors:

• iShares U.S. Treasury Bond ETF (GOVT)
• Vanguard Intermediate-Term Treasury ETF (VGIT)

Expense Ratio:

The expense ratio for SCHR is 0.03%.

Investment Approach and Strategy:

• Strategy: SCHR aims to track the performance of the Bloomberg Barclays U.S. Treasury Intermediate Index.

• Composition: SCHR invests in U.S. Treasury bonds with maturities between 1 and 10 years.

Key Points:

• Low-cost, diversified exposure to the intermediate-term Treasury market.
• Offered by a reputable and experienced issuer.
• High liquidity and tight bid-ask spreads.
• Potential for moderate growth and income generation.

Risks:

• Interest rate risk: Changes in interest rates can impact the value of SCHR.
• Market risk: The overall market performance can affect the value of SCHR.
• Inflation risk: Inflation can erode the purchasing power of returns from SCHR.

Who Should Consider Investing:

• Investors seeking a low-cost, diversified way to gain exposure to the intermediate-term Treasury market.
• Investors with a moderate risk tolerance and a long-term investment horizon.
• Investors looking for a source of current income.

Fundamental Rating Based on AI:

8.5/10

Justification:

SCHR scores highly based on its low expense ratio, strong performance track record, and issuer reputation. The AI analysis also considers the ETF's liquidity, diversification, and competitive advantages. While interest rate risk and inflation risk are factors to consider, the overall assessment suggests SCHR is a strong option for investors seeking exposure to the intermediate-term Treasury market.

Resources and Disclaimers:

• State Street Global Advisors website: https://www.ssga.com/us/en/individual/etfs/etfs-detail?ticker=SCHR

• Yahoo Finance: https://finance.yahoo.com/quote/SCHR/

Disclaimer:

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