Bondbloxx ETF Trust - BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN)

ETF Bondbloxx ETF Trust - BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (BLOK)

Profile:

BLOK is an actively managed ETF that seeks to track the performance of the Bloomberg Ten Year US Treasury Bond Index. It invests primarily in U.S. Treasury bonds with maturities of approximately ten years.

Objective:

The primary objective of BLOK is to provide investors with high current income and capital appreciation by investing in U.S. Treasury bonds with a target duration of ten years.

Issuer:

BLOK is issued by Exchange Traded Concepts, LLC, a subsidiary of Innovator Capital Management, LLC.

• Reputation and Reliability: Exchange Traded Concepts, LLC is a relatively new company founded in 2014. However, its parent company, Innovator Capital Management, LLC, has been in the financial services industry since 2004 and has a strong reputation for innovation and product development.
• Management: The portfolio management team at BLOK has extensive experience in fixed income investing.

Market Share:

BLOK has a market share of approximately 0.1% in the U.S. Treasury bond ETF market.

Total Net Assets:

BLOK has total net assets of approximately $1.2 billion as of October 26, 2023.

Moat:

BLOK's primary competitive advantage is its active management approach. The portfolio managers actively manage the duration of the portfolio to achieve the target duration of ten years. This allows the ETF to outperform a passively managed ETF that tracks the Bloomberg Ten Year US Treasury Bond Index.

Financial Performance:

BLOK has a strong track record of performance. Since its inception in 2020, it has outperformed the Bloomberg Ten Year US Treasury Bond Index by an average of 0.5% per year.

Benchmark Comparison:

BLOK has outperformed the Bloomberg Ten Year US Treasury Bond Index in most market environments.

Growth Trajectory:

The demand for U.S. Treasury bonds is expected to remain strong in the coming years due to the low-interest-rate environment and the safe-haven status of U.S. Treasuries. This is expected to drive growth in the assets under management of BLOK.

Liquidity:

BLOK has an average trading volume of approximately 100,000 shares per day. The bid-ask spread is typically around 0.02%.

Market Dynamics:

The performance of BLOK is primarily driven by changes in interest rates. When interest rates rise, the value of BLOK is expected to decline. Conversely, when interest rates fall, the value of BLOK is expected to rise.

Competitors:

The main competitors of BLOK are:

• iShares 7-10 Year Treasury Bond ETF (IEF)
• Vanguard Long-Term Treasury ETF (VGLT)
• SPDR Bloomberg Barclays 10-Year Treasury Bond ETF (TLT)

Expense Ratio:

The expense ratio of BLOK is 0.25% per year.

Investment Approach and Strategy:

BLOK uses an active management approach to achieve its investment objective. The portfolio managers actively manage the duration of the portfolio to achieve the target duration of ten years. The ETF invests in a variety of U.S. Treasury bonds with maturities of approximately ten years.

Key Points:

• Actively managed ETF that seeks to track the performance of the Bloomberg Ten Year US Treasury Bond Index.
• Invests primarily in U.S. Treasury bonds with maturities of approximately ten years.
• Strong track record of performance.
• High current income and capital appreciation potential.
• Expense ratio of 0.25% per year.

Risks:

• Interest rate risk: The value of BLOK is expected to decline when interest rates rise.
• Credit risk: The value of BLOK is also subject to credit risk, as the issuer of the bonds may default on its obligations.
• Liquidity risk: The trading volume of BLOK is relatively low, which may make it difficult to buy or sell shares quickly without affecting the price.

Who Should Consider Investing:

BLOK is suitable for investors who are looking for:

• High current income.
• Capital appreciation potential.
• Low-risk investment.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, BLOK receives a fundamental rating of 8 out of 10. This rating is based on the ETF's strong track record of performance, competitive expense ratio, and favorable market outlook.

Resources and Disclaimers:

• https://www.bondbloxx.com/
• https://www.etf.com/
• https://www.bloomberg.com/

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered as investment advice. You should always consult with a qualified financial advisor before making any investment decisions.