SPDR Barclays Intermediate Term Corporate Bond (SPIB)

Overview

The SPDR Barclays Intermediate Term Corporate Bond ETF (ITR) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Barclays U.S. Intermediate Corporate Bond Index. It invests in a diversified portfolio of investment-grade corporate bonds with maturities between 1 and 10 years.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable ETF provider with a long track record in the market.

Management Expertise

SSGA has a large team of experienced portfolio managers and fixed-income specialists managing their bond ETFs.

Goal

The fund seeks to track the investment results of an index composed of U.S. dollar-denominated, investment grade corporate bonds publicly issued in the U.S. domestic market and that have a remaining maturity of greater than or equal to one year and less than ten years.

Investment Approach and Strategy

Strategy: The ETF aims to replicate the performance of the Bloomberg Barclays U.S. Intermediate Corporate Bond Index.

Composition The ETF holds a diversified portfolio of intermediate-term, investment-grade corporate bonds.

Market Share: ITR has a significant market share in the intermediate-term corporate bond ETF category.

Total Net Assets (AUM): 113500000

Key Competitors

• iShares Intermediate-Term Corporate Bond ETF (IGIB)
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
• Schwab Intermediate-Term Corporate Bond ETF (SCHI)

Competitive Landscape

The intermediate-term corporate bond ETF market is competitive with several large players. ITR faces competition from larger, more liquid ETFs like IGIB and VCIT. ITR's advantage lies in its specific focus and potentially slightly different tracking methodology, while its disadvantage is its smaller size and lower liquidity compared to competitors.

Historical Performance: Historical performance data needs to be retrieved directly from financial data providers and is dependent on the time period.

Benchmark Comparison: Benchmark comparison needs to be retrieved directly from financial data providers and will depend on the time period of the benchmark.

Expense Ratio: 0.07

Average Trading Volume

The average trading volume of ITR suggests moderate liquidity, allowing for relatively easy buying and selling of shares, but it is lower than its major competitors.

Bid-Ask Spread

The bid-ask spread of ITR typically remains relatively tight, indicating low transaction costs for investors.

Market Environment Factors

Interest rate movements, credit spreads, and overall economic conditions significantly impact the performance of ITR.

Growth Trajectory

ITR's growth is tied to the overall demand for intermediate-term corporate bonds, which can fluctuate based on investor sentiment and interest rate expectations. There are no significant changes to strategy or holdings expected.

Competitive Edge

ITR's competitive advantage comes from being a part of the SPDR ETF family, which is known for its low-cost and well-managed ETFs. The fund's specific focus on the intermediate-term segment allows investors to fine-tune their fixed-income exposure. However, larger competitors have a significant advantage in terms of liquidity and brand recognition. This ETF aims to offer a more tailored approach to corporate bond investing compared to broader bond market ETFs. Still, its specific focus may limit its appeal to some investors.

Volatility

ITR's volatility is moderate, reflecting the nature of intermediate-term corporate bonds.

Market Risk

The primary risks associated with ITR include interest rate risk (bond prices fall when interest rates rise) and credit risk (the risk that bond issuers may default on their payments).

Ideal Investor Profile

The ideal investor for ITR is a risk-averse investor seeking stable income and moderate capital appreciation from investment-grade corporate bonds.

Market Risk

ITR is suitable for long-term investors seeking a diversified fixed-income portfolio and those looking for a balance between risk and return.

The SPDR Barclays Intermediate Term Corporate Bond ETF (ITR) provides exposure to a diversified portfolio of intermediate-term, investment-grade corporate bonds. Managed by State Street Global Advisors, ITR aims to track the Bloomberg Barclays U.S. Intermediate Corporate Bond Index. Its relatively low expense ratio and moderate liquidity make it a suitable option for long-term investors. However, its smaller size compared to competitors like IGIB and VCIT should be considered before investing. ITR is well-suited for investors seeking a balance between risk and return within the corporate bond market.

Data Sources:

• State Street Global Advisors (SSGA)
• Bloomberg
• Morningstar
• ETF.com

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market data and analysis are subject to change. Investors should conduct their own due diligence before making any investment decisions.