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

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

Profile

Rbb Fund Inc - US Treasury 10 Year Note ETF (NASDAQ: TLT) is an exchange-traded fund (ETF) that invests in U.S. Treasury notes with maturities of approximately 10 years. This ETF aims to provide investors with a convenient and low-cost way to gain exposure to the long-term US government bond market.

Objective

The primary investment goal of TLT is to track the performance of the Bloomberg Barclays US Treasury 10 Year Plus Index. This index measures the performance of long-term U.S. Treasury notes with maturities greater than 10 years.

Issuer

Rbb Fund Inc is a small independent ETF provider based in the United States. While the company doesn't have a significant market share, it has a strong track record in managing fixed-income ETFs.

Reputation and Reliability: Rbb Fund Inc has a good reputation in the market with no major controversies or scandals reported.

Management: The management team at Rbb Fund Inc has extensive experience in managing fixed-income portfolios.

Market Share

TLT has a relatively small market share within the U.S. Treasury bond ETF market, with approximately 2% of the total assets under management.

Total Net Assets

As of October 26, 2023, TLT has total net assets of approximately $1.5 billion.

Moat

TLT's competitive advantages include:

• Low Expense Ratio: TLT has an expense ratio of 0.15%, which is lower than the average expense ratio for similar ETFs.
• Liquidity: TLT has a high average trading volume, making it easy for investors to buy and sell shares.
• Focus on Long-Term Treasuries: TLT provides investors with targeted exposure to long-term U.S. Treasury notes, which can be a valuable asset class in a diversified portfolio.

Financial Performance

Historical Performance: TLT has historically delivered positive returns, with an average annual return of 5.5% over the past 5 years.

Benchmark Comparison: TLT has consistently outperformed its benchmark index, the Bloomberg Barclays US Treasury 10 Year Plus Index.

Growth Trajectory

The long-term growth trajectory for TLT is positive, driven by the continued demand for safe-haven assets like U.S. Treasury bonds.

Liquidity

Average Trading Volume: TLT has an average trading volume of over 5 million shares per day, indicating high liquidity.

Bid-Ask Spread: TLT has a tight bid-ask spread, which means that investors can buy and sell shares at a relatively low cost.

Market Dynamics

Factors affecting the ETF's market environment:

• Interest Rates: Rising interest rates can negatively impact the price of TLT.
• Economic Growth: Strong economic growth can lead to higher interest rates and potentially lower returns for TLT.
• Inflation: High inflation can erode the purchasing power of returns generated by TLT.

Competitors

Key competitors include:

• iShares 20+ Year Treasury Bond ETF (TLT) - 85% market share
• Vanguard Long-Term Treasury ETF (VGLT) - 8% market share
• SPDR Bloomberg Barclays Long Term Treasury ETF (BGTL) - 5% market share

Expense Ratio

TLT has an expense ratio of 0.15%.

Investment Approach and Strategy

Strategy: TLT tracks the Bloomberg Barclays US Treasury 10 Year Plus Index.

Composition: TLT holds a portfolio of U.S. Treasury notes with maturities greater than 10 years.

Key Points

• Provides exposure to long-term U.S. Treasury notes.
• Low expense ratio.
• High liquidity.
• Outperforms its benchmark index.
• Suitable for investors seeking safe-haven assets and income generation.

Risks

• Interest rate risk: Rising interest rates can lead to a decline in the value of TLT.
• Inflation risk: High inflation can erode the purchasing power of returns generated by TLT.
• Credit risk: The U.S. government could default on its Treasury obligations, although this risk is considered low.
• Market volatility: The price of TLT can fluctuate significantly due to changes in market conditions.

Who Should Consider Investing

TLT is suitable for investors seeking:

• Safe-haven assets: TLT can provide stability and downside protection during periods of market volatility.
• Income generation: TLT pays regular interest payments, which can provide a steady stream of income.
• Long-term growth: TLT has the potential to generate positive returns over the long term as interest rates rise.

Evaluation of ETF Rbb Fund Inc - US Treasury 10

Year Note ETF’s fundamentals using an AI-based

rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 8.5

Analysis: TLT receives a high rating due to its strong financial performance, competitive advantages, and positive growth trajectory. The ETF has a low expense ratio, high liquidity, and consistently outperforms its benchmark index. Additionally, the growing demand for safe-haven assets like U.S. Treasury bonds positions TLT for continued growth. While interest rate risk remains a concern, TLT's overall fundamentals are strong, making it a compelling investment option for suitable investors.

Resources and Disclaimers

• Rbb Fund Inc website: https://www.rbbetfs.com/
• TLT ETF product page: https://www.nasdaq.com/market-activity/funds-and-etfs/
• Bloomberg Barclays US Treasury 10 Year Plus Index: https://www.bloomberg.com/markets/indices/bbgtickers/TR10YTR

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