State Street launches fixed income ETF
State Street Global Advisors has launched a fixed income ETF on its SPDR exchange traded funds platform. The ETF, listed on the Deutsche Borse, is intended for sale in the UK.
The new SPDR Barclays Capital 1-3 Year Euro Government Bond ETF continues a focus from SSgA on delivering physically managed core fixed income allocation ETFs for investors. The SPDR ETF invests in short maturity European government bonds. All SPDR ETFs are physically replicated, said SSgA.
The fund tracks the Barclays Capital 1 – 3 Year Euro Treasury Bond Index, which consists of about 75 fixed-rate, investment-grade public obligations of the participating countries in the European Monetary Union. Only investment grade bonds issued in euro or legacy euro currencies with a maturity between one and three years are included, said SSgA.
Eleanor Hope-Bell, head of the Intermediary Business for northern Europe at SSgA said: “With a strong focus on liquidity and transparency, investors are increasingly drawn to ETFs and growth in this market continues at a strong pace. SPDR remains committed to offering investors core building blocks in which they can build long-term strategic portfolios.”
There are now 30 SPDR ETFs listed on European exchanges, including Deutsche Börse, Euronext Paris, the London Stock Exchange, SIX Swiss Exchange and Borsa Italiana.
State Street Global Advisors created the first ETF in 1993, and today manages 141 physically backed ETFs with US $2441 billion in assets worldwide (as of 30 September 2011).