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Products December 17, 2009
SSgA Launches Short-Term Corporate Bond ETF
State Street Global Advisors (SSgA), the investment management business of State Street Corporation, announced that the SPDR Barclays Capital Short Term Corporate Bond ETF (SCPB) began trading on the NYSE Arca on Thursday.
Reported by Rebecca Moore
According to the announcement, the SPDR Barclays Capital Short Term Corporate Bond ETF seeks to track the price and yield performance of the Barclays Capital US 1-3 Year Corporate Bond Index. The index includes corporate issues that have a remaining maturity of greater than or equal to one year and less than three years, are rated investment grade (average A2/A3 credit rating), and have $250 million or more of outstanding face value.
As of November 30, there were 572 issues included in the Index with an average maturity of 1.91 years.
The fund’s annual expense ratio is 0.1245%.
“As investors look to improve the diversification of their fixed-income holdings, demand for precise access to the corporate bond duration curve has increased,” said Anthony Rochte, senior managing director at State Street Global Advisors, in the announcement. “The SPDR Barclays Capital Short Term Corporate Bond ETF can help investors position their portfolios for a potential increase in interest rates, as short-term corporate bonds are historically less sensitive to interest rate movements than longer term issues.”
More information is available at www.ssga.com .