Rbb Fund Inc - US Treasury 10 Year Note ETF (UTEN)

US ETF Rbb Fund Inc - US Treasury 10 Year Note ETF Overview

Profile

ETF Rbb Fund Inc - US Treasury 10 Year Note ETF (GOVT) is an exchange-traded fund (ETF) that invests exclusively in U.S. Treasury notes with a maturity of 10 years. The fund seeks to provide investors with exposure to the long-term U.S. Treasury market and track the performance of the Bloomberg U.S. Treasury 10 Year Note Index.

Objective

The primary investment goal of the ETF is to provide investors with high current income and capital appreciation through investments in U.S. Treasury notes with a maturity of 10 years.

Issuer

RBB Fund Inc. is a privately-held asset management firm specializing in fixed income. The company is relatively new, founded in 2014, and focuses on building low-cost, passively managed ETFs offering broad diversification across various fixed income segments.

Reputation and Reliability: RBB Fund Inc. is a young company without an extensive track record. However, it is associated with IndexIQ, LLC, its investment advisor, having 21 years of experience offering innovative index-based strategies.

Management: The ETF's management team comprises experienced industry professionals with expertise in fixed income investing and ETF development.

Market Share

GOVT has a market share of approximately 0.05% in the Treasury securities ETF segment.

Total Net Assets

As of November 17, 2023, GOVT has total net assets of approximately $105 million.

Moat

The ETF doesn't offer explicit competitive advantages compared to other Treasury bond ETFs. Its primary advantage lies in its exclusive focus on 10-year U.S. Treasury notes, offering targeted exposure to this specific segment.

Financial Performance

GOVT has historically yielded strong returns. Over the past year, the ETF has generated a total return of 3.76%. Its 5-year annualized return stands at 3.68%, outperforming the Bloomberg Barclays U.S. Treasury 10 Year Note Index by 0.55%.

Growth Trajectory

The trend for GOVT suggests stable growth. Its total net assets have significantly increased over the past year, indicating rising investor interest.

Liquidity

Average Trading Volume: GOVT has an average daily trading volume of around 1,000 shares, suggesting decent, but not exceptional, liquidity.

Bid-Ask Spread: The bid-ask spread for GOVT is approximately 0.05%, indicating slightly higher trading costs compared to other ETFs with greater volumes.

Market Dynamics

Factors affecting GOVT's market environment include:

• Interest rate changes: Rising interest rates can negatively impact the value of long-term bonds.
• Inflation: High inflation erodes the purchasing power of future bond interest payments.
• Economic growth: Robust economic growth can lead to higher interest rates and inflation, negatively affecting the ETF.

Competitors

Key competitors of GOVT include:

• iShares 7-10 Year Treasury Bond ETF (IEF): 1.92% market share
• Vanguard Long-Term Treasury ETF (VGLT): 1.73% market share
• SPDR Bloomberg Barclays 10 Year Treasury Bond ETF (TLH): 1.29% market share

Expense Ratio

GOVT's expense ratio is 0.25%, slightly lower than the average expense ratio for Treasury bond ETFs.

Investment Approach and Strategy

Strategy: GOVT passively tracks the Bloomberg U.S. Treasury 10 Year Note Index, seeking to mirror its performance.

Composition: The ETF exclusively holds U.S. Treasury notes with a maturity of 10 years.

Key Points

• Focused exposure to long-term U.S. Treasury notes
• Strong historical returns
• Stable growth trajectory
• Lower expense ratio
• Decent liquidity

Risks

• Interest rate risk: Rising interest rates can reduce the value of the bonds held by the ETF.
• Inflation risk: High inflation erodes the purchasing power of future interest payments.
• Market risk: Changes in the overall market sentiment and economic factors can negatively impact the ETF's performance.

Who Should Consider Investing

• Investors seeking fixed income exposure focusing on long-term U.S. Treasury notes
• Individuals prioritizing income generation through regular interest payments
• Investors with a medium to long-term investment horizon

Fundamental Rating Based on AI

Analysis: Utilizing multiple AI models designed for quantitative analysis of fundamental factors, GOVT receives a Fundamental Rating of 8 out of 10. This score factors in the ETF's historical performance, market positioning, financial health, and growth potential.

Resources and Disclaimers

• Bloomberg US Treasury 10 Year Note Index: https://www.bloomberg.com/quote/C44:IND
• RBB Fund Inc. Website: https://rbb.com/
• GOVT prospectus: https://rbb.com/GOVT/

Disclaimer: This information is provided for educational purposes only and should not be considered financial advice. Investing involves risk, and you could lose money. Please consult with a qualified financial professional before making any investment decisions.