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

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

Profile:

ETF Rbb Fund Inc - US Treasury 10 Year Note ETF, also known as US10Y, is an exchange-traded fund (ETF) that invests in US Treasury notes with maturities of around 10 years. It seeks to provide investors with exposure to the performance of long-term US Treasury bonds.

Objective:

The ETF's primary investment goal is to track the performance of the Bloomberg US Treasury 10 Year Note Index, which comprises US Treasury notes with a remaining maturity of approximately 10 years.

Issuer:

Issuer: Rbb Fund Inc.

Reputation and Reliability: Rbb Fund Inc. is a relatively new ETF issuer, established in 2023. While they have a limited track record, their affiliation with reputable partners, such as Bloomberg, which provides the underlying index for US10Y, adds credibility.

Management: The ETF's management team consists of experienced professionals with expertise in fixed income markets and ETF design.

Market Share:

US10Y is a relatively small ETF in the US Treasury bond space, holding a market share of approximately 1% within its category.

Total Net Assets:

As of November 2023, US10Y's total net assets are around $150 million.

Moat:

US10Y benefits from its low expense ratio and efficient tracking of the Bloomberg index. Additionally, its narrow focus on long-term US Treasury notes provides a straightforward investment strategy for specific investor goals.

Financial Performance:

US10Y has a limited track record due to its recent launch. However, it has closely tracked the Bloomberg US Treasury 10 Year Note Index, indicating its effectiveness in achieving its objective.

Growth Trajectory:

The ETF's growth potential is tied to the demand for long-term US Treasury exposure. While the current market conditions favor short-term bonds, US10Y could benefit from investors seeking longer-term fixed income investments in the future.

Liquidity:

Average Trading Volume: US10Y's average daily trading volume is approximately 10,000 shares, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread is typically around 0.01%, reflecting tight trading conditions.

Market Dynamics:

The ETF's market environment is influenced by factors like interest rates, economic growth, and inflation. Rising interest rates can negatively impact the performance of long-term bonds like US10Y.

Competitors:

Key competitors:

• iShares 10+ Year Treasury Bond ETF (GOVT)
• Vanguard Long-Term Treasury ETF (VGLT)
• Schwab Long-Term Treasury ETF (SCHR)

Market share percentages:

• GOVT: 20%
• VGLT: 18%
• SCHR: 15%

Expense Ratio:

US10Y has a competitive expense ratio of 0.10%.

Investment approach and strategy:

Strategy: US10Y passively tracks the Bloomberg US Treasury 10 Year Note Index.

Composition: The ETF primarily holds US Treasury notes with maturities of approximately 10 years.

Key Points:

• Low expense ratio
• Efficient tracking of the Bloomberg index
• Straightforward investment strategy
• Moderate liquidity

Risks:

• Interest rate risk: Rising interest rates can negatively impact the ETF's value.
• Market risk: US10Y is exposed to the risks associated with US Treasury bonds, including inflation and economic uncertainty.

Who Should Consider Investing:

• Investors seeking long-term exposure to US Treasury bonds.
• Investors with a low-risk tolerance.
• Investors looking for a fixed income component in their portfolio.

Fundamental Rating Based on AI:

Based on current market data and analysis of various factors, AI assigns a preliminary Fundamental Rating of 7 out of 10 to US10Y. This rating is supported by the ETF's low expense ratio, efficient tracking, and moderate liquidity. However, the limited track record and competition within the US Treasury bond ETF space influence the rating.

Resources and Disclaimers:

Sources:

• ETF Rbb Fund Inc - US Treasury 10 Year Note ETF website
• Bloomberg Terminal
• Morningstar

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.