SPDR SSGA My2026 Corporate Bond ETF (MYCF)

Overview

The SPDR SSGA My2026 Corporate Bond ETF (YR26) seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg U.S. Corporate Bond 1-5 Year Index. It focuses on holding corporate bonds with a final maturity date in 2026, offering a defined maturity strategy.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable asset manager with a long history in the ETF market.

Management Expertise

SSGA has a team of experienced portfolio managers and analysts dedicated to fixed income investments.

Goal

The fund seeks to track the performance, before fees and expenses, of the Bloomberg U.S. Corporate Bond 1-5 Year Index (the "Index").

Investment Approach and Strategy

Strategy: The ETF aims to replicate the performance of a corporate bond index with bonds maturing in 2026.

Composition The ETF holds primarily investment-grade corporate bonds with a focus on those maturing in 2026. It may also hold cash and other instruments.

Market Share: YR26 holds a moderate market share within the defined maturity corporate bond ETF category.

Total Net Assets (AUM): 194700000

Key Competitors

• Invesco BulletShares 2026 Corporate Bond ETF (BSFQ)
• iShares iBonds Dec 2026 Term Corporate ETF (IBDN)

Competitive Landscape

The competitive landscape consists of similar defined maturity corporate bond ETFs. YR26 benefits from SSGA's brand but competes on expense ratio and tracking performance. BSFQ has the advantage with higher AUM, and IBDN is backed by BlackRock. The advantage or disadvantage is determined by expense ratio and the tracking efficiency of the underlying index.

Historical Performance: Historical performance data varies and should be obtained from reliable financial data providers.

Benchmark Comparison: The ETF's performance should be compared to the Bloomberg U.S. Corporate Bond 1-5 Year Index to assess its tracking efficiency.

Expense Ratio: 0.12

Average Trading Volume

The average trading volume for YR26 provides sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for YR26 is typically tight, resulting in reasonable trading costs.

Market Environment Factors

Economic indicators, interest rate movements, and credit spreads influence the performance of corporate bonds within the ETF.

Growth Trajectory

Growth depends on demand for defined-maturity strategies and the ETF's ability to attract and retain assets. There have been no significant changes to the strategy or holdings. The ETF is still relatively new and may experience higher growth if interest rates continue to fluctuate.

Competitive Edge

YR26 benefits from the established reputation of SSGA. The defined maturity strategy provides a predictable investment horizon, appealing to investors seeking targeted fixed-income exposure. It offers diversification within the corporate bond market with a specific maturity date. This can be attractive for investors planning for future liabilities or income needs.

Volatility

Corporate bond ETFs exhibit moderate volatility, primarily influenced by interest rate sensitivity and credit risk.

Market Risk

The primary market risk is interest rate risk, which can negatively impact bond values. Credit risk exists with the corporate bonds within the ETF. Liquidity risk is minimal since the ETF has high AUM.

Ideal Investor Profile

The ideal investor is someone seeking defined-maturity corporate bond exposure for a specific investment horizon (e.g., 2026).

Market Risk

YR26 is suitable for long-term investors who have a specific maturity date in mind, such as those saving for a future expense.

SPDR SSGA My2026 Corporate Bond ETF (YR26) is a defined-maturity corporate bond ETF managed by State Street Global Advisors. It aims to track the Bloomberg U.S. Corporate Bond 1-5 Year Index, focusing on bonds maturing in 2026. The ETF offers a predictable investment horizon and is suitable for long-term investors with specific liability needs. The ETF is highly competitive in a defined maturity sector because it is backed by SSGA. Performance hinges on the fluctuations of bonds that are in line with its maturity date and the underlying index it is tracking.

Data Sources:

• SSGA Website
• Bloomberg
• Morningstar
• ETFdb.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results.