US Treasury 10 Year Note ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns it an Above Average Process Pillar rating. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including modest portfolio manager turnover and overall reasonable fees.

Analyst Rating

US Treasury 10 Year Note ETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The primary contributor to the rating is that this fund tracks an index. Historical data, like 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 bolsters the process. Lastly, the process is limited by the experience of the management team, which averages seven years at this fund.

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

The investment seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the ICE BofA Current 10-Year US Treasury Index.  Under normal market conditions and the Adviser seeks to achieve the investment objective by investing at least 80% of the net assets (plus any borrowings for investment purposes) in the component securities of the index. The index is a one-security index comprised of the most recently issued 10-year US Treasury note.  

 This strategy has a modest 3.8% 12-month yield, lower than its average peers' 4.0%. Plus, its 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return) sits at 4.1%. While a lower yield may deliver less income, it also tends to indicate lower credit risk.

Above Average

Process

North Slope’s team earns An Average People Pillar rating. The most substantial contributor to the rating is the firm's five-year retention rate of 100%. The portfolio managers' outperformance at the funds they run, as measured by their combined three-year manager excess returns, also contributes to the rating. Lastly, the rating is limited by the experience of the management team, which averages seven years at this fund.

Average

People

Even though North Slope only has a one-year track record, it has shown to be an industry-standard steward, warranting an Average Parent Pillar rating. North Slope currently runs 10 vehicles, with a total of $4.31 billion under management and a roster of three portfolio managers.   

 A pocket of strength is the firm’s economical fees on its open-end and exchange-traded funds, demonstrating a firmwide commitment to minimizing costs and maximizing investors’ returns. The average net expense ratio of its funds is within the cheapest quintile of firms.  

 To retain an Average rating, North Slope needs to maintain a consistent track record of positive investor experience.

Parent

US Treasury 10 Year Note Etf

UTEN is a passively managed, single-bond fund that invests in the most recently issued, on-the-run, 10-year US Treasury note. The fund is designed for those specifically required to track the 10-year tenor on the yield curve.

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UTEN is an exchange-traded fund focused on Treasuries. The fund aims to offer the return profile of a constant maturity 10-year Treasury note. Every month, UTEN will sell the currently held, old 10-Year US Treasury and roll into the newly issued 10-Year US Treasury.

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For investors wanting the safety of US government debt, the US Treasury 2 Year Note ETF invests based on the ICE BofA Current 2-Year US Treasury Index. For investors believing rates are near their peak, the US Treasury 10 Year Note ETF invests based on the ICE BofA Current 10-Year US Treasury Index.

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News for US Treasury 10 Year Note Etf ETF (UTEN)