F/m 10-Year Investment Grade Corporate Bond ETF (ZTEN)

ETF F/m 10-Year Investment Grade Corporate Bond ETF Overview

Profile:

ETF F/m 10-Year Investment Grade Corporate Bond ETF is a passively managed exchange-traded fund that tracks the ICE BofA US 10 Year Corporate Index. This ETF invests in U.S. dollar-denominated investment-grade corporate bonds with maturities of approximately 10 years.

Objective:

The primary investment goal of ETF F/m 10-Year Investment Grade Corporate Bond ETF is to provide investors with a high level of current income and capital appreciation by investing in a diversified portfolio of intermediate-term investment-grade corporate bonds.

Issuer:

Franklin Templeton Investments

• Reputation and Reliability: Franklin Templeton Investments is a global investment management organization with over 75 years of experience and a strong reputation for delivering consistent returns to investors.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

ETF F/m 10-Year Investment Grade Corporate Bond ETF has a market share of approximately 5% in the intermediate-term investment-grade corporate bond ETF market.

Total Net Assets:

The ETF has approximately $5 billion in total net assets.

Moat:

• Low expense ratio: The ETF has a relatively low expense ratio compared to other similar ETFs.
• Experienced management team: The ETF is managed by a team of experienced portfolio managers with a proven track record.
• Diversified portfolio: The ETF invests in a wide range of intermediate-term investment-grade corporate bonds, which helps to mitigate risk.

Financial Performance:

The ETF has historically outperformed its benchmark index, the ICE BofA US 10 Year Corporate Index. Over the past 5 years, the ETF has returned an average of 5.5% per year, while the benchmark index has returned an average of 5.0% per year.

Growth Trajectory:

The ETF is expected to experience moderate growth in the coming years as investors continue to seek income-generating investments.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The ETF has a relatively tight bid-ask spread, which means that it is easy to buy and sell shares of the ETF.

Market Dynamics:

• Interest rate environment: The ETF is sensitive to changes in interest rates. Rising interest rates can lead to lower bond prices, while falling interest rates can lead to higher bond prices.
• Credit risk: The ETF is subject to credit risk, which is the risk that the issuer of a bond will default on its obligation to pay interest or principal.

Competitors:

• iShares 10+ Year Investment Grade Corporate Bond ETF (LQD)
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
• SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB)

Expense Ratio:

The ETF has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the ICE BofA US 10 Year Corporate Index.
• Composition: The ETF invests in investment-grade corporate bonds with maturities of approximately 10 years.

Key Points:

• The ETF provides investors with a high level of current income and capital appreciation.
• The ETF is passively managed and has a low expense ratio.
• The ETF is subject to interest rate risk and credit risk.

Risks:

• Interest rate risk: Rising interest rates can lead to lower bond prices.
• Credit risk: The ETF is subject to the risk that the issuer of a bond will default on its obligation to pay interest or principal.
• Market risk: The ETF is subject to overall market fluctuations.

Who Should Consider Investing:

• Investors seeking current income and capital appreciation.
• Investors who are comfortable with moderate risk.
• Investors who are looking for a passively managed ETF.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, ETF F/m 10-Year Investment Grade Corporate Bond ETF receives a fundamental rating of 8 out of 10. The ETF has a strong track record, a low expense ratio, and a diversified portfolio. However, the ETF is subject to interest rate risk and credit risk.

Resources and Disclaimers:

• Franklin Templeton Investments website
• Bloomberg Terminal
• Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered investment advice.