BondBloxx BBB Rated 1-5 Yr Corp Bd ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy earns it a High Process Pillar rating. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like overall attractive fees and minimal portfolio manager turnover. This earns the firm an Average Parent Pillar rating.

Analyst Rating

BondBloxx BBB Rated 1-5 Yr Corp Bd ETF earns a High Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also underpins the rating. Management team experience, which averages 25 years at this fund, supports the process as well.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the Bloomberg US Corporate BBB 1-5 Year Index.  The index is designed to reflect the performance of BBB fixed-rate, taxable U.S. dollar-denominated corporate bonds issued by U.S. and non-U.S. industrial, utility and financial issuers. Under normal circumstances, the fund will invest at least 80% of its net assets either directly or indirectly in a portfolio of U.S. dollar-denominated, and investment grade corporate bonds issued by U.S. and non-U.S. corporate issuers rated BBB with remaining maturities of greater than or equal to one year and less than five years. The fund is non-diversified.

High

Process

BondBloxx Investment Management LLC’s team receives An Average People Pillar rating. The largest contributor to the rating is the firm's five-year retention rate of 100%. This fund tracks an index, which also improves its People rating. Historical data, such as Morningstar's Active/Passive Barometer, reveals that index funds have generally outperformed their active counterparts, especially over the long term. Lastly, the rating is limited by the number of months that the management team has been running this vehicle together. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

Average

People

Since its inception only two years ago, BondBloxx Investment Management LLC has demonstrated that it can be trusted as much as the next asset manager. As a result, it has an Average Parent Pillar rating. BondBloxx Investment Management LLC currently oversees 25 vehicles, with a total of $2.66 billion under management and a bench of 13 fund managers. BondBloxx Investment Management LLC's management team is composed of mostly veteran managers, averaging 20 years of industry experience. A firm's ability to retain its talent is a crucial indicator of its culture. This has been a strength of BondBloxx Investment Management LLC, which has had lower-than-average manager turnover. 

 BondBloxx Investment Management LLC deserves plaudits for its commitment to low fees for its open-end and exchange-traded funds, which showcases its willingness to prioritize investors. The firm's average net expense ratio across all funds is in the cheapest quintile of firms.  

 To keep an Average rating, BondBloxx Investment Management LLC will be expected to maintain a consistent track record of positive investor experience.

Parent

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF

BBBS tracks a market value-weighted index of BBB-rated, USD-denominated corporate bonds maturing between 1-5 years.

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