State Street Global Advisors began trading the SPDR Barclays Capital Short Term High Yield Bond ETF on the NYSE Arca. The new SPDR ETF offers investors access to high yield corporate bonds with short durations. Its annual expense ratio is 40 basis points.
The ETF is benchmarked to the Barclays Capital 0-5 Cash Pay Constrained High Yield Index, which includes publicly issued U.S. dollar denominated, non-investment-grade, fixed rate, taxable corporate bonds that have a remaining maturity of less than five years, are rated high-yield (Ba1/BB+/BB+ or below) using the middle rating of Moody’s Investors Service Inc., Fitch, Inc., or Standard & Poor’s Inc., and have $350 million or more of issuance.
“Offering equity-like returns with less volatility, demand for high yield bond exposure is on the rise,” stated James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors.
State Street Global Advisors’ fixed income ETF portfolio is now comprised of 34 SPDR ETFs. Overall, State Street manages more than $274 billion in SPDR ETF assets worldwide as of the end of December.
Hung Tran writes for Money Management Executive.