(XDGU) Xtrackers USD Corporate - Ratings and Ratios

The Xtrackers USD Corporate Bond UCITS ETF 1D CHF (SW:XDGU) is designed to track the performance of the Bloomberg Barclays USD Liquid Investment Grade Corporate Index, which comprises fixed-interest tradable debt issued by financially stable US and non-US companies across various industries.

The underlying index is a benchmark for investment-grade corporate bonds with specific maturity, credit rating, and liquidity requirements, ensuring a relatively stable income stream. The bonds in the index are rated as investment grade, indicating a low to moderate credit risk.

From a quantitative perspective, key performance indicators (KPIs) such as yield, duration, and credit spread can be used to evaluate the ETFs performance. The yield, for instance, can provide insight into the income generated by the underlying bonds, while duration can help assess the ETFs sensitivity to interest rate changes. A higher duration indicates greater sensitivity to interest rate fluctuations.

Additionally, the ETFs credit quality can be assessed by analyzing the credit ratings of the underlying bonds. The investment-grade rating suggests a relatively low default risk. Other KPIs, such as the ETFs expense ratio and tracking error, can also be used to evaluate its efficiency and ability to replicate the underlying index.

With an AUM of $794.42 million, the ETF has a substantial asset base, which can contribute to liquidity and potentially lower trading costs. However, the current price of 10.17 is at its 52-week low, suggesting a potential buying opportunity or a reflection of market conditions. Further analysis of the ETFs historical performance, relative to its benchmark and peers, can provide additional insights into its investment potential.