(CBUS) UBS(Lux)Fund Solutions – - Ratings and Ratios

The UBS(Lux)Fund Solutions – Bloomberg US Liquid Corporates UCITS ETF(USD)A-dis (SW:CBUS) is an exchange-traded fund designed to replicate the performance of the Bloomberg Barclays US Liquid Corporates Index, a benchmark that tracks the US corporate bond market. The funds primary objective is to provide investors with exposure to a diversified portfolio of US corporate bonds, while minimizing the impact of currency fluctuations through currency-hedged share classes.

By tracking the Bloomberg Barclays US Liquid Corporates Index, the fund offers investors access to a broad range of US corporate bonds with high liquidity, thereby reducing the risk associated with individual bond holdings. The indexs methodology ensures that the constituent bonds are representative of the overall US corporate bond market, providing a reliable benchmark for investors.

From a technical analysis perspective, the funds price action indicates a relatively stable trend, with the short-term moving averages (SMA20 and SMA50) hovering around the current price of 14.66. The longer-term SMA200 is slightly lower, suggesting a potential support level. The Average True Range (ATR) of 0.09 indicates a moderate level of price volatility. Given these technical indicators, it is likely that the funds price will continue to trade within a narrow range in the short term.

Fundamentally, the funds Assets Under Management (AUM) stand at $74.98 million, indicating a relatively modest size compared to other ETFs in the same category. However, this does not necessarily imply a lack of liquidity, as the fund is listed on a major exchange and tracks a widely followed index. The US corporate bond market is expected to remain relatively stable, driven by a strong economy and low default rates. As a result, the fund is likely to continue to track the performance of its underlying index, providing investors with a reliable source of income and diversification.

Forecasting the funds future performance using a combination of technical and fundamental data, we can expect the price to remain relatively stable in the short term, potentially trading between 14.50 and 14.80. In the longer term, the funds performance is likely to be driven by the overall direction of the US corporate bond market, which is expected to remain influenced by economic fundamentals, interest rates, and credit spreads. As such, a potential target price for the fund could be around 15.20, assuming a continued stable economic environment and a moderate increase in bond yields.