(XTWY) Bondbloxx Trust - - Ratings and Ratios

The BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY) is designed to provide exposure to U.S. Treasury securities with a target duration of approximately 20 years. The fund primarily invests in a combination of U.S. Treasury notes, bonds, and principal-only STRIPS (Separate Trading of Registered Interest and Principal Securities), which are included in the Bloomberg US Treasury Index. By focusing on these securities, the ETF aims to offer a targeted duration profile, making it suitable for investors seeking specific interest rate sensitivity. The fund is non-diversified, meaning it may concentrate its holdings in a smaller number of securities, which can lead to higher volatility compared to diversified funds.

Under normal market conditions, the ETF will allocate at least 80% of its net assets to a portfolio of U.S. Treasury securities with an average duration of around 20 years. This targeted approach allows investors to gain exposure to longer-duration Treasury securities, which are more sensitive to changes in interest rates. The inclusion of STRIPS, which are stripped Treasury securities that pay no interest and trade at a discount to their face value, further enhances the funds ability to achieve its duration target. The Bloomberg US Treasury Index serves as the benchmark for the fund, providing a broad representation of the U.S. Treasury market.

As of the latest data, the ETF has an average volume of 11,635 shares over the past 20 days, with a last price of $40.14. The funds short-term moving average (SMA 20) is $39.59, while its medium-term (SMA 50) and long-term (SMA 200) moving averages are $38.73 and $40.56, respectively. The Average True Range (ATR) of $0.42 indicates relatively low volatility in recent trading. The funds assets under management (AUM) stand at $59.10 million, reflecting moderate investor interest in this targeted Treasury ETF.

Looking ahead, the technical and fundamental data suggest the following 3-month outlook for XTWY:

1. Price Action: Based on the moving averages, the ETF is likely to trade within a range of $38.50 to $42.00 over the next three months. The SMA 200 at $40.56 will likely act as a key resistance level, while the SMA 50 at $38.73 may provide support.

2. Volatility: The ATR of $0.42 indicates that price fluctuations are expected to remain moderate, with average daily price movements of less than 1%.

3. Volume Trends: The average daily volume of 11,635 shares suggests that the ETF is not heavily traded, which may lead to occasional liquidity challenges. Investors should monitor volume trends to confirm the strength of any breakout or breakdown from the identified range.

4. Fundamental Outlook: The AUM of $59.10 million reflects a moderate level of investor interest. If interest rates remain stable or decline, the funds longer-duration securities may attract more inflows, potentially driving AUM higher.

In summary, XTWY is expected to remain range-bound over the next three months, with price movements influenced by broader interest rate trends and technical support/resistance levels. Investors seeking targeted exposure to longer-duration U.S. Treasury securities may find this ETF appealing, but they should be aware of its non-diversified nature and associated risks.