Weakness in Quadratic Deflation ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the most expensive quintile among peers.  

 The strategy gets a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in corporate bonds and AA rated bonds compared with category peers. The portfolio management team managing the strategy earns a Low People Pillar rating. Even though the strategy's parent organization has some investor-friendly attributes like notable personal investments from managers, a cohort of unseasoned portfolio managers holds it back. As a result, the firm obtains a Low Parent Pillar.

Analyst Rating

Vanguard Long-Term Treasury ETF

Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage. Quadratic Deflation ETF earns a Low Process Pillar rating.    The main detractor from the rating is the parent firm's five-year retention rate of 54%, which suggests it could do more to retain its portfolio managers. The parent firm's five-year risk-adjusted success ratio of 50% also holds the rating back. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. Management team experience, which averages five years at this fund, detracts from the rating as well.

 Compared with other funds in the Long Government Morningstar Category, this fund, historically, hews closely to peers' credit and interest-rate sensitivity over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Relative to the category average, the managers have been substantially underweight corporate debt in recent years. In the latest month, the strategy has also relatively underweighted corporate debt compared with Morningstar Category peers. Additionally, there's been an underallocation from AA rated bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to AA rated bonds than peers. Finally, during the past few years, the fund leaned away from debt with 15- to 20-year maturities. In recent months, the strategy also had less exposure to debt with 15- to 20-year maturities compared to its peers.

 This strategy's 12-month yield is 4.3%, higher than its average peer's 4.0%. It also has a 2.0% 30-day SEC yield (a measure similar to yield-to-maturity). While a higher yield may deliver more income, it also tends to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated AAA.

Process

Quadratic Deflation ETF earns a Low People Pillar rating. The most meaningful detractor from the rating is the experience of the management team, which averages five years at this fund. The parent firm's five-year retention rate of 54% also holds the rating back. The parent firm's five-year success ratio of 50% further hinders the team. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

People

Kraneshares has a ways to go to become an industry-standard steward, resulting in a Low Parent Pillar rating. Despite the negative rating, an area of strength of the firm is manager investment.  Over 29% of the firm's assets are covered by invested managers, in an effort to align portfolio manager and shareholder interests. Kraneshares's longest-tenured managers do not possess the same experience as management teams at other firms, a detractor from its rating. Specifically, average asset-weighted tenure within the firm is only five years.

Parent

Quadratic Deflation ETF

BNDD is an actively managed portfolio of US Treasuries and options strategies tied to the shape of the US interest rate swap curve.

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Imagine stocks or funds that pay out their dividends once a month! Unlike waiting for quarterly, semi-annual, or (ugh) annual payouts, your angst waiting for money is reduced by 300% or more! These August U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net gains include: 1. Stocks by yield (85); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by yield >8.74% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs.Equities; 4. Fund risks/rewards. All per prices as of 8/15/23.

83 Monthly Paying Dividend Stocks And 80 Funds For September

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Imagine stocks or funds that pay out their dividends once a month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These August U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (85); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.74% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 8/15/23.

85 Monthly Paying Dividend Stocks And 80 Funds For August

Bonds look increasingly attractive in the second half, given current yields and the indication of a Fed pause to interest rate hikes. Advisors and investors looking to broaden their bond exposures should consider the Quadratic Deflation ETF (BNDD), up 7% YTD on a total returns basis.

Enhance Your Bond Exposures With BNDD, Up 7% YTD

While there are strong yield opportunities back in bonds, some bond ETFs stand out this year for their performance. In particular, the Quadratic Deflation ETF (BNDD) is noteworthy, outperforming the broad U.S. fixed income market year-to-date.

BNDD Outperforms Broad U.S. Bond Market

Short-term Treasury yields rose at the end of June, benefiting several bond ETF strategies. The Quadratic Deflation ETF (BNDD) ended the month and first half on a strong note and is well-positioned for slowing growth.

BNDD Rose 4% in June, a Top-Performing Bond ETF YTD

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Imagine stocks or funds that pay out their dividends once a month!  Your angst waiting for money is reduced by 300%, or more; unlike waiting for quarterly, semi-annual or (ugh) annual payouts. These May U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (83); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >9.97% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 6/16/23.

81 Monthly-Paying Dividend Stocks And 80 Funds For June

June brought a reprieve from interest rate hikes but the potential for two more rate increases this year. The Quadratic Deflation ETF (BNDD) is well-positioned for slowing growth and is a top-performing bond ETF year-to-date.

BNDD Strong First Half Bond ETF, Up Over 7% YTD

The Quadratic Deflation ETF is a fixed-income ETF that seeks to benefit from lower growth, deflation, and lower or negative long-term interest rates. The BNDD ETF's name may be misleading, as it outperformed in inflationary 2022 due to its yield curve flattening options. Investors should consider the likelihood of a recession and the potential for interest rate cuts, which may steepen the yield curve and be detrimental to the BNDD ETF.

BNDD: Long-Term Treasuries Plus Yield Flatteners

The debt ceiling negotiations remain the primary focus for markets in the final days of May. Investors piled into longer-duration bonds on worries of default risk, and the Quadratic Deflation ETF (BNDD) benefited.

As Debt Ceiling Fears Drag on Markets, BNDD Outperforms

Recession is on the horizon, or potentially already here, and the added stress of banking sector risk alongside a jobs market that might finally be cooling makes positioning portfolios now for further economic slowing and recession a high priority.

Investors are Positioning for Recession with BNDD

The Quadratic Deflation ETF is a fixed-income fund that seeks to benefit from lower growth, deflation, and lower or negative long-term interest rates. Most of the vehicle is invested in the Vanguard Long-Term Treasury ETF, while a small portion is composed of bought options on the 2Y-30Y spread relationship.

BNDD: A Deflationary Fund For Inflationary Times

Economic slowdown is starting to have a measurable impact on companies as FedEx reported a strong decline in package delivery worldwide and issued a warning of further economic impacts globally and in the U.S. for the remainder of the year, reported the Wall Street Journal.

When Aggressive Fed Hikes Loom, Invest for Slowdown With BNDD

Bond investing has been a painful point for portfolios this year in a rising rate regime as the Federal Reserve aggressively combats persistent high inflation. The Fed responded to June's 9.1% CPI reading and the strong labor market by raising interest rates 0.75% on Wednesday, reported the WSJ.

Fed Hikes 0.75%: Position for Economic Slowdown With BNDD

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Federal Reserve Chairman Jerome Powell has indicated that the central bank will be increasing interest rates by half a percentage point in May, the first such increase in over 20 years, reports the Wall Street Journal. Powell made comments at a panel that was hosted by the International Monetary Fund, signaling a half point increase [.

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The Federal Reserve raised interest rates 0.25% at the March meeting while laying out the expectation of six more rate increases, but Federal Reserve Governor Christopher Waller has warned of a potential need for a half-point increase at least once this year to combat soaring inflation, reports CNBC. Waller was one of the members that voted [.

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Skyrocketing oil, wheat, and other commodity prices driven higher by Russia's invasion of Ukraine may have markets anticipating longer-term, high inflation, but economists still predict inflation to fall to between 2.7 and less than 5% by December, reported the Wall Street Journal. Predicting inflation and how it rises and falls has generally been complicated but [.

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The month of February saw continued market volatility as investor sentiment and uncertainty continued to drive investments. Advisors and investors continued to pivot their investment strategy in anticipation of the Fed raising interest rates in March, and CPI and other inflation-measuring data continued to come back high, showing no reprieve from the pressures for now.

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The invasion of Ukraine by Russia last week saw U.S. government bonds fall temporarily, but they closed the week having recovered from the drop, with the 10-year Treasury note closing at 1.984%, almost its highest since the pandemic's onset, reports the Wall Street Journal. War generally drives investors to bond markets as they anticipate economic impacts [.

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We might be edging closer to a post-pandemic world, but the other side looks fairly inward turning as countries focus on combating debt, declining productivity, and depopulation within their borders. All this amounts to slowing growth, particularly in countries where inflation is soaring such as the U.S., writes Ruchir Sharma, chair of Rockefeller International, in [.

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A strong U.S. jobs report last week has investors within the bond market hedging on greater Fed tightening but anticipating inflation to cool within five years, reports Financial Times. A measure of inflation within the Treasury markets has indicated that inflation should fall to less than 3% within five years, a far cry from the 7% [.

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January was a volatile month for markets, with advisors and investors pivoting their portfolios to face a rising rate environment. The following were the top four KraneShares ETFs that pulled in their share of the moving money, indicating interest in fundamentals, ESG principles, and diversification.

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It's the season for hedging, according to fund flows since the beginning of the year. One fund in particular has seen a big uptick in flows since the beginning of December: the Quadratic Deflation ETF (BNDD).

News for Quadratic Deflation ETF ETF (BNDD)