13 important things you should know about Invesco PowerShares BAB ETF

Updated: Last Sunday
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Before we start: if you’re looking for BAB “stock” price, you can quickly find it out by visiting Finny and typing "BAB quote". If you’re looking for a quick scoop on BAB "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "BAB". You’ll get all this info in one place.

Are you looking to buy or sell BAB? Or perhaps you’re looking for BAB fact sheet, and learn about its alternatives? If so, you came to the right place.

In this BAB ETF review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: BAB performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: BAB buy or sell; the pros and cons of investing in BAB ETF;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to BAB.

And here is the list of questions we’ll answer:

  1. Describe PowerShares Build America Bond Portfolio (BAB).
  2. What is BAB underlying index?
  3. What are BAB holdings?
  4. What is BAB performance? What are BAB historical returns?
  5. How many up and down years did BAB have historically?
  6. What is BAB dividend yield?
  7. What is BAB expense ratio?
  8. What is BAB tax efficiency (tax-cost ratio)?
  9. What is BAB beta? How would you assess BAB risk?
  10. What is BAB Sharpe ratio?
  11. What is BAB Finny Score? BAB buy or sell?
  12. What are the pros of investing in BAB? What are BAB buy reasons?
  13. What are the cons of investing in BAB? What are BAB sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe PowerShares Build America Bond Portfolio (BAB).

The Fund seeks investment results that correspond generally to the price and yield of an index called The BofA Merrill Lynch Build America Bond Index. The Fund invests in taxable municipal securities eligible to participate in the Build America Bond program created by the American Recovery and Reinvestment Act of 2009.

2. What is BAB underlying index?

BofA Merrill Lynch US Taxable Municipal Securities Plus Index.

3. What are BAB top holdings?

BAB has 0 stock holdings and 319 bond holdings.

The top 10 holdings represent 15.67% of total assets. Here are the top holdings:

Name Symbol % Assets
CALIFORNIA ST 7.6% N/A 3.35%
UNIVERSITY CALIF REVS 4.13% N/A 1.90%
PENNSYLVANIA ST UNIV 2.89% N/A 1.65%
CALIFORNIA ST 7.3% N/A 1.55%
COMMONWEALTH FING AUTH PA REV 3.66% N/A 1.50%
AMERICAN MUN PWR OHIO INC REV 8.08% N/A 1.21%
CALIFORNIA ST 7.5% N/A 1.20%
PORT AUTH N Y & N J 4.46% N/A 1.14%
LOS ANGELES CALIF DEPT WTR & PWR REV 6.57% N/A 1.09%
PORT AUTH N Y & N J 4.93% N/A 1.08%

4. What is BAB performance? What are BAB historical returns?

BAB has generated the following returns:

  • 1-month return is 0.65%;
  • 3-month return is -2.23%;
  • 1-year return is 7.19%;
  • 3-year return is 6.59%;
  • 5-year return is 5.87%;
  • 10-year return is 6.76%.

5. How many up and down years did BAB have historically?

In the last 10 years, BAB had 8 up years and 2 down years.

6. What is BAB dividend yield?

BAB yield is 3.46%.

7. What is BAB expense ratio?

BAB expense ratio is 0.28%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. What is BAB tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.35%;
  • 3-year ax cost ratio is 1.59%.

9. What is BAB beta? How would you assess BAB risk?

  • 3-year beta is 1.79;
  • 5-year beta is 1.68;
  • 10-year beta is 1.81.

10. What is BAB Sharpe ratio?

  • 3-year Sharpe ratio is 1.25;
  • 5-year Sharpe ratio is 1.02;
  • 10-year Sharpe ratio is 1.24.

Analysis

11. What is BAB Finny Score? BAB buy or sell?

BAB Finny Score is 50. Our quantitative analysis shows 3 reasons to buy BAB and 3 reasons to sell it, resulting in the Finny Score of 50.

12. What are the pros of investing in BAB? What are BAB buy reasons?

The following are BAB strengths from our perspective:

  • BAB 3-year return is 6.59%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 5.14%.
  • BAB 5-year return is 5.87%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 3.85%.
  • BAB 10-year return is 6.76%, which is higher than the 10-year return of the benchmark index (Bloomberg Barclays US Aggregate Bond TR USD), 3.87%.

13. What are the cons of investing in BAB? What are BAB negatives?

The following are BAB weaknesses from our perspective:

  • BAB 3-year Beta is 1.79, which is higher than the index (BBgBarc US Agg Bond TR USD) 3-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 3 years.
  • BAB 5-year Beta is 1.68, which is higher than the index (BBgBarc US Agg Bond TR USD) 5-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 5 years.
  • BAB 10-year Beta is 1.81, which is higher than the index (BBgBarc US Agg Bond TR USD) 10-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 10 years.
In the BAB review, we covered BAB key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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