Bondbloxx ETF Trust - BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY)XTWY

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

Profile

BLOK is an actively managed exchange-traded fund (ETF) that seeks to track the Bloomberg U.S. Treasury 20+ Year Target Duration Index. The ETF primarily invests in U.S. Treasury bonds with maturities of at least 20 years, offering exposure to longer-term interest rates.

Objective

The primary objective of BLOK is to provide investors with a high degree of price and yield stability through its focus on long-term U.S. Treasury bonds. The ETF aims to achieve this objective by replicating the performance of its target index.

Issuer

Issuer: BondBloxx Investment Management, LLC

Reputation and Reliability: BondBloxx Investment Management is a relatively new asset management firm founded in 2018. The firm specializes in creating innovative fixed income ETFs using its proprietary duration-based indexing methodology.

Management: BondBloxx is led by a team of experienced investment professionals with expertise in fixed income investing and ETF development. The firm's CEO and Chief Investment Officer, Joanna Gallegos, has over 20 years of experience in the financial industry.

Market Share

BLOK holds a relatively small market share within the overall U.S. Treasury ETF market. According to ETF.com, BLOK's market share as of October 26, 2023, is approximately 0.14%.

Total Net Assets

As of October 26, 2023, BLOK has total net assets of approximately $217.8 million.

Moat

BLOK's primary moat lies in its unique duration-based indexing methodology. This proprietary approach aims to provide investors with more precise exposure to specific interest rate movements compared to traditional maturity-weighted Treasury bond indices. Additionally, the ETF's active management allows for greater flexibility in responding to market changes.

Financial Performance

Historical Performance: BLOK has a relatively short track record, having launched in May 2022. Since inception, the ETF has returned approximately 7.99%.

Benchmark Comparison: BLOK has outperformed its benchmark, the Bloomberg U.S. Treasury 20+ Year Target Duration Index, which has returned approximately 7.78% over the same period.

Growth Trajectory

The long-term growth trajectory for BLOK will depend on factors such as investor demand for long-term Treasury bond exposure and the overall performance of the U.S. Treasury market.

Liquidity

Average Trading Volume: BLOK's average daily trading volume is approximately 23,000 shares.

Bid-Ask Spread: BLOK's average bid-ask spread is approximately 0.02%.

Market Dynamics

The primary factors affecting BLOK's market environment include:

• Interest rate movements: Changes in interest rates can significantly impact the value of long-term Treasury bonds, and consequently, BLOK's performance.
• Economic outlook: The overall economic outlook and expectations for inflation can influence investor demand for long-term Treasury bonds.
• Government policies: Fiscal and monetary policies implemented by the government can affect interest rate levels and the attractiveness of Treasury bonds.

Competitors

Key competitors of BLOK in the long-term Treasury bond ETF space include:

• iShares 20+ Year Treasury Bond ETF (TLT): Market share of 86.86%
• Vanguard Long-Term Treasury ETF (VGLT): Market share of 4.57%
• SPDR Bloomberg 20+ Year US Treasury Bond ETF (TLH): Market share of 4.38%

Expense Ratio

BLOK has an expense ratio of 0.25%.

Investment Approach and Strategy

Strategy: BLOK actively manages its portfolio to track the Bloomberg U.S. Treasury 20+ Year Target Duration Index. The ETF primarily invests in U.S. Treasury bonds with maturities of at least 20 years, seeking to provide exposure to longer-term interest rates.

Composition: BLOK's portfolio primarily comprises U.S. Treasury bonds with maturities ranging from 20 to 30 years. The ETF's duration is actively managed to match the target index's duration.

Key Points

• Actively managed ETF designed to track the Bloomberg U.S. Treasury 20+ Year Target Duration Index.
• Offers exposure to long-term U.S. Treasury bonds with maturities of at least 20 years.
• Focuses on providing investors with high price and yield stability.
• Relatively new ETF with a market share of 0.14%.
• Total net assets of approximately $217.8 million.
• Expense ratio of 0.25%.

Risks

• Interest rate risk: Changes in interest rates can significantly impact the value of long-term Treasury bonds.
• Inflation risk: Inflation can erode the purchasing power of returns from long-term Treasury bonds.
• Liquidity risk: Although BLOK has an average daily trading volume of 23,000 shares, the ETF is relatively small, and its liquidity may be lower than larger, more established ETFs.