State Street Launches Long-Term Bond ETF
By Ron DeLegge, Editor
March 13, 2009
SAN DIEGO (ETFguide.com) - State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), has just introduced the SPDR Barclays Capital Long Term Credit Bond ETF (NYSEArca: LWC).
LWC provides market exposure to long- term (10+ years) investment grade bonds and the fund’s performance along with its yield is linked to the Barclays Capital U.S. Long Credit Index.
The underlying index contains investment grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to 10 years. As of December 31, 2008, the index included 965 issues with an average dollar-weighted maturity of 24.39 years.
“Demand for access to high quality, long term credit bonds is on the rise as investors search for alternatives to U.S. Treasuries that will improve the yield on their fixed income portfolios,” said Anthony Rochte, senior managing director at State Street Global Advisors. “The SPDR Barclays Capital Long Term Credit Bond ETF is the longest-maturity credit bond ETF available to investors and a key addition to our growing family of fixed income SPDRs, which have attracted more than $800 million in net inflows in just the first two months of 2009.”
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According to the prospectus, the fund’s annual expense ratio is 0.15 percent.
State Street Global Advisors manages more than $4 billion across 15 bond ETFs that provide access to core segments of the bond market.
The Boston, MA-based firm is one of the largest ETF providers in the United States and globally. U.S. assets under management for SPDR ETFs ended last year at $159 billion.
