SPDR Barclays Long Term Treasury (SPTL)

ETF Overview: SPDR® Portfolio Short Term Corporate Bond ETF (SPSB)

Profile:

SPSB is an exchange-traded fund (ETF) that seeks to provide investment results that, before expenses, generally correspond to the performance of the Bloomberg Barclays U.S. Short Term Corporate Bond Index (the “Index”). The Index tracks the performance of USD-denominated, investment-grade, taxable, fixed-rate, short-term corporate bonds issued in the United States.

Objective:

The primary investment goal of SPSB is to offer investors exposure to the short-term corporate bond market with high credit quality. This objective is achieved by investing in a portfolio of bonds with maturities of less than 3 years.

Issuer:

SPSB is issued by State Street Global Advisors, a leading asset management firm with over $4 trillion in assets under management.

Reputation and Reliability: State Street Global Advisors is a highly reputable and reliable issuer with a long-standing track record in the financial services industry. The firm is known for its strong investment expertise and commitment to client service.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income markets. The team has a deep understanding of the short-term corporate bond market and a proven track record of managing bond portfolios.

Market Share:

As of November 7, 2023, SPSB has a market share of approximately 1.5% in the short-term corporate bond ETF market.

Total Net Assets:

As of November 7, 2023, SPSB has total net assets of approximately $3.5 billion.

Moat:

Low Expense Ratio: SPSB has a low expense ratio of 0.05%, making it one of the most cost-efficient short-term corporate bond ETFs available.

Diversification: The ETF invests in a broad range of short-term corporate bonds from various sectors and issuers, which helps to mitigate credit risk and enhance portfolio diversification.

Financial Performance:

Historical Performance:

• Year-to-Date (YTD): 2.7%
• 1 Year: 3.5%
• 3 Years: 6.2%
• 5 Years: 4.8%

Benchmark Comparison: SPSB has consistently outperformed its benchmark index, the Bloomberg Barclays U.S. Short Term Corporate Bond Index, over various timeframes.

Growth Trajectory:

The short-term corporate bond market is expected to grow moderately in the coming years, driven by factors such as rising interest rates and increasing demand for fixed income investments.

Liquidity:

Average Daily Trading Volume: 1 million shares

Bid-Ask Spread: 0.02%

Market Dynamics:

Factors affecting the ETF's market environment include economic growth, interest rate levels, and credit conditions in the corporate bond market.

Competitors:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA) - Market Share: 2.5%
• Vanguard Short-Term Corporate Bond ETF (BSV) - Market Share: 2.0%

Expense Ratio:

The expense ratio of SPSB is 0.05%.

Investment Approach and Strategy:

Strategy: SPSB tracks the Bloomberg Barclays U.S. Short Term Corporate Bond Index.

Composition: The ETF invests in USD-denominated, investment-grade, taxable, fixed-rate, short-term corporate bonds issued in the United States.

Key Points:

• Low expense ratio
• Diversified portfolio of short-term corporate bonds
• Strong historical performance
• High liquidity

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of bonds.
• Credit risk: The bonds held by the ETF are subject to credit risk, meaning that the issuer may default on its obligations.
• Market risk: The value of the ETF can fluctuate due to changes in the overall market conditions.

Who Should Consider Investing:

SPSB is suitable for investors seeking short-term exposure to the corporate bond market with low credit risk and a high level of diversification. This ETF is particularly attractive for investors who are looking for a conservative investment with a potential for modest income and capital appreciation.

Fundamental Rating Based on AI:

9.0/10

Justification: SPSB has a strong fundamental rating based on its low expense ratio, diversified portfolio, strong historical performance, and high liquidity. The ETF also benefits from being issued by a reputable and reliable asset management firm. The primary risk to consider is interest rate risk, as rising rates could lead to a decline in the value of the bonds held by the ETF.

Resources and Disclaimers:

• State Street Global Advisors website: https://www.ssga.com/us/en/individual/etfs/etf-library-detail?ticker=spsb
• Morningstar: https://www.morningstar.com/etfs/arcx/spsb/quote

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