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Triple short-dated bond launch boosts SPDR ETF's fixed income suite
by Elsa Buchanan on Sep 02, 2013 at 09:56
SPDR ETFs, the exchange traded fund (ETF) platform of State Street Global Advisors (SSgA), is launching three short duration bond instruments.
The SPDR Barclays 0-3 Year US Corporate Bond Ucits ETF, the SPDR Barclays 0-3 Year Euro Corporate Bond Ucits ETF and the SPDR Barclays 1-3 Year US Treasury Bond Ucits ETF will be available on both the London Stock Exchange and Deutsche Börse.
Antoine Lesne, fixed income portfolio strategist at SSgA, said short duration bond ETFs could improve risk-adjusted returns and lower the overall sensitivity of portfolios to changes in rates, a key concern for investors in the current climate.
He said: ‘Many fixed income investors are reviewing the sources of return in their bond allocations.
'More specific allocations to short-dated bond exposures via these three new ETFs may offer the potential to deliver better risk- adjusted returns than their all-maturity counterparts and help lower the negative impact of a steepening yield curve.’.
SPDR ETFs manages in excess of $335 billion (£215.5 billion) worldwide in over 180 global, US, European, UK, emerging market, high yield and inflation-linked indexes products.