It is an actively managed aggregate bond ETF that uses the Bloomberg US Aggregate Bond Index as its benchmark while tactically adjusting its allocation to structured credit and high-yield corporate bonds. It holds bonds across a wide range of maturities, from Treasuries to corporate bonds.

It suits investors who want a core bond holding in their portfolio while also pursuing the excess return opportunities of active management.

It is an ETF run by Strive using an active management approach.

The fund uses the Bloomberg Aggregate Bond Index as its base benchmark, keeps a heavy weighting in securitized bonds such as Treasuries and agency mortgages, and tactically blends in corporate bonds and structured credit assets in pursuit of excess returns. It is an active strategy that adjusts sector allocations according to market conditions.

• Active credit allocation compared with a passive aggregate bond index
• Portfolio construction with a heavy weighting in securitized bonds

Assets under management (AUM) are $114.9M, and the total expense ratio is 0.49% per year.

As is typical for a bond ETF, its price moves with the direction of interest rates and changes in credit spreads, and the bond market has recently been volatile as expectations for the rate path have shifted.

As an active bond ETF, it may see fund inflows and outflows in response to changes in the market rate environment, and these tend to track the fund flows of the broader aggregate bond category.

Its strength is the potential for excess returns through active credit allocation, while its weaknesses are higher operating costs than passive funds and its reliance on the manager's ability to manage credit risk.

Passive aggregate bond ETFs shown in the table include BNDX and IUSB. They track their indexes directly and tend to have low fees, but unlike STXT they do not actively adjust credit allocation. BINC, PYLD, and JCPB are also similar to STXT in their approach because they use active bond management, though they differ in each issuer's credit allocation philosophy and fee level. Beyond the table, investors who want core bond exposure centered on Treasuries can consider AGG, and those who want lower volatility through ultra-short-term bonds can look at products such as SGOV.

Here are the points to review before investing in STXT. Because it is an active bond ETF, investors should first understand the interest rate and credit environment and the issuer's allocation approach, and should also look at how it differs from passive bond ETFs.

In periods of rising rates and widening credit spreads, the fund can come under downward price pressure despite its active credit allocation strategy. Another point to note is that its performance relative to the passive benchmark depends on the management team's judgment.

It is a suitable choice for investors who want a core bond holding while also pursuing active excess returns. Investors who prioritize low fees may prefer passive products such as BNDX and IUSB, while those who want active credit allocation may find this ETF a better fit.