(XTRE) Bondbloxx Trust - Ratings and Ratios

The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE) is designed to invest at least 80% of its net assets in U.S. Treasury securities with an average duration of approximately 3 years. This investment strategy aims to provide exposure to a specific segment of the U.S. Treasury market, focusing on securities with a relatively short to intermediate term maturity.

Given its investment objective, XTRE is likely to be sensitive to changes in short-term to intermediate-term interest rates. As a result, its performance will be closely tied to the overall direction of U.S. monetary policy and the yield curve. The funds non-diversified nature means that it may be more susceptible to interest rate risk and less able to mitigate potential losses through diversification.

To evaluate the funds performance, key metrics to consider include its yield, duration, and expense ratio. A yield comparison to other short-term government ETFs can help assess its income generation capabilities. Additionally, analyzing the funds tracking error relative to its benchmark, the Bloomberg US Treasury Index, can provide insight into its ability to replicate the indexs performance. Other relevant KPIs include the funds liquidity, as measured by its average trading volume, and its tax efficiency, which can be evaluated by examining its turnover rate and capital gains distributions.

With an AUM of $173.32M, XTRE has achieved a moderate level of scale, which can help to reduce its expense ratio and improve its overall cost efficiency. However, its relatively small size may also impact its liquidity and ability to absorb large trades without significant price movements.