4 min readBy Ron Koren ETF Insider
IXJ VS IHF
Compare the IXJ and IHF ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
State Street Global Advisors, the issuer of the SPAB ETF (SPDR Portfolio Aggregate Bond ETF), employs a sampling strategy to track the performance of the Bloomberg U.S. Aggregate Bond Index. Established in January 2010, SPAB aims to replicate the risk and return characteristics of the Index by investing in a subset of the securities it contains. The ETF typically invests at least 80% of its assets in the securities comprising the Index and may also include debt securities not in the Index, cash equivalents, and money market instruments. With a focus on the U.S. dollar-denominated investment-grade bond market, SPAB offers investors diversified exposure to various fixed-income securities while seeking to maintain liquidity and achieve its objective.
While the primary objective of the SPDR Portfolio Aggregate Bond ETF (SPAB) is to track the performance of the Bloomberg U.S. Aggregate Bond Index, it also offers a dividend distribution component to its investors. These distributions typically occur on a periodic basis, often in accordance with the interest payments made on the underlying bonds within the index. SPAB follows a strategy of investing in a representative subset of the index's securities to mimic its risk and return characteristics. Investors can expect the ETF to allocate a significant portion of its assets to investment-grade government and corporate bonds, ensuring a consistent stream of income for eligible shareholders.
Tracking the Bloomberg U.S. Aggregate Bond Index is at the heart of the SPDR Portfolio Aggregate Bond ETF's (SPAB) strategy. SPAB employs a sampling approach, not necessarily acquiring all the index's securities but instead opting for a subset with similar risk-return characteristics. This approach allows SPAB to efficiently mirror the performance of the Bloomberg U.S. Aggregate Bond Index, which includes U.S. dollar-denominated investment-grade government and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and other asset-backed securities. By closely aligning with the index, SPAB aims to provide investors with exposure to the U.S. investment-grade bond market while maintaining efficient tracking.
The correlation aspect of the SPDR Portfolio Aggregate Bond ETF (SPAB) is primarily associated with its tracking of the Bloomberg U.S. Aggregate Bond Index. As SPAB aims to mirror the performance of this index, its correlation with the broader U.S. investment-grade bond market is generally strong. This high correlation makes SPAB a reliable choice for investors seeking exposure to a diversified portfolio of U.S. investment-grade bonds. To explore and study SPAB's correlations with various market segments and assets more deeply, ETF Insider offers a user-friendly web app with insightful visualization tools that help investors make informed decisions and identify overlap opportunities within the ETF's holdings.
The SPAB ETF, known as the SPDR Portfolio Aggregate Bond ETF (SPAB), primarily focuses on the U.S. investment-grade bond market. It aims to replicate the performance of the Bloomberg U.S. Aggregate Bond Index, which includes government bonds, corporate bonds, mortgage-backed securities, and other asset-backed securities that meet specific criteria. SPAB may also invest in debt securities not included in the index and may utilize derivatives for efficient portfolio management. As of July 31, 2022, it had approximately 28% exposure to U.S. agency mortgage pass-through securities, commonly issued by entities like GNMA and FNMA, adding diversity to its fixed income holdings.
The exposure profile of the SPDR Portfolio Aggregate Bond ETF (SPAB) centers around the U.S. investment-grade bond market. SPAB seeks to replicate the performance of the Bloomberg U.S. Aggregate Bond Index, which encompasses a diversified range of fixed-income securities. This ETF offers investors exposure to U.S. government bonds, corporate bonds, mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities, providing a well-rounded representation of the U.S. bond market. For detailed insights into SPAB's exposure and to explore correlations and overlaps with other ETFs, ETF Insider's web app offers a user-friendly visualization tool with comprehensive data on U.S. ETFs.
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4 min readCompare the IXJ and IHF ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
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