SPDR® SSGA Fixed Income Sector Rotation ETF (FISR)

Overview

The SPDRu00ae SSGA Fixed Income Sector Rotation ETF (FCTR) seeks to provide investment results that correspond to the total return performance of the SSGA Fixed Income Sector Rotation Index. It aims to outperform a traditional fixed income benchmark by dynamically allocating across various fixed income sectors based on a proprietary methodology.

Reputation and Reliability

State Street Global Advisors (SSGA) is one of the largest and most reputable asset managers globally with a long track record of managing ETFs.

Management Expertise

SSGA has a dedicated team of fixed income specialists with experience in sector allocation and quantitative investment strategies.

Goal

The ETF aims to provide a total return exceeding a traditional fixed income benchmark by actively managing sector allocations within the fixed income market.

Investment Approach and Strategy

Strategy: The ETF employs an active sector rotation strategy based on a proprietary quantitative model that considers various economic and market factors to identify attractive fixed income sectors.

Composition The ETF primarily holds a diversified portfolio of fixed income securities, including U.S. Treasury bonds, investment-grade corporate bonds, high-yield corporate bonds, mortgage-backed securities, and emerging market debt.

Market Share: FCTR's market share within the actively managed fixed income ETF category is relatively small compared to larger, passively managed bond ETFs.

Total Net Assets (AUM): 57350000

Key Competitors

• PIMCO Active Bond ETF (BOND)
• DoubleLine Total Return Bond ETF (DLTN)
• JPMorgan Core Plus Bond ETF (JAGG)

Competitive Landscape

The actively managed fixed income ETF market is competitive, with numerous funds vying for investor capital. FCTR's advantage lies in its proprietary sector rotation strategy, but it faces competition from ETFs with larger AUM, established track records, and different investment philosophies. A disadvantage of FCTR can be a higher expense ratio due to the active management and relatively small AUM.

Historical Performance: Historical performance data should be obtained from official sources and presented in a table or chart showing returns over various time periods (e.g., 1-year, 3-year, 5-year, 10-year, since inception).

Benchmark Comparison: The ETF's performance should be compared to a relevant fixed income benchmark, such as the Bloomberg Barclays U.S. Aggregate Bond Index, to assess its effectiveness in generating alpha.

Expense Ratio: 0.35

Average Trading Volume

The average trading volume for FCTR is moderate, but could be more active as the AUM grows.

Bid-Ask Spread

The bid-ask spread is typically small, reflecting the liquidity of the underlying fixed income securities.

Market Environment Factors

Economic growth, interest rate movements, inflation expectations, and credit spreads can all impact the performance of FCTR's underlying fixed income holdings.

Growth Trajectory

The ETF's growth depends on its ability to consistently outperform its benchmark and attract investor interest in its active sector rotation strategy, with changes potentially made to the model or sector weightings based on market conditions.

Competitive Edge

FCTR's competitive advantage lies in its proprietary quantitative sector rotation model, which aims to identify and overweight attractive fixed income sectors while underweighting less attractive ones. This active management approach seeks to generate alpha above a traditional fixed income benchmark. The ETF is run by State Street Global Advisors which brings significant resources and expertise. However, the success of this approach depends on the accuracy and effectiveness of the model.

Volatility

The ETF's volatility is influenced by the volatility of the underlying fixed income securities and the active sector rotation strategy. This might make it more or less volatile than broad passive market ETFs.

Market Risk

The ETF is exposed to market risk, including interest rate risk, credit risk, and inflation risk, which can impact the value of its fixed income holdings.

Ideal Investor Profile

The ideal investor is one seeking to outperform the broad market fixed income indexes and comfortable with active management and sector rotation strategies that provide the potential for increased returns but are exposed to greater risk.

Market Risk

The ETF is suitable for long-term investors who can tolerate moderate fluctuations in value and are looking for potential outperformance in the fixed income market.

The SPDRu00ae SSGA Fixed Income Sector Rotation ETF (FCTR) offers an actively managed approach to fixed income investing through a proprietary sector rotation strategy. While it aims to outperform traditional fixed income benchmarks, its success depends on the effectiveness of its quantitative model. The ETF's AUM is relatively small, however, so it has limited liquidity and higher expense ratio than passive ETFs. FCTR may appeal to investors seeking enhanced returns in the fixed income market and who are tolerant of active management risks and fees.

Data Sources:

• SPDRu00ae SSGA Fixed Income Sector Rotation ETF (FCTR) Fact Sheet
• ETF.com
• Morningstar
• State Street Global Advisors (SSGA)

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.