SSGA changes indices for two SPDR Treasury bond ETFs

May 1st, 2018 | By | Category: Fixed Income

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State Street Global Advisors has changed the underlying indices for two of its fixed income ETFs – the SPDR Portfolio Short Term Treasury ETF (SPTS US) and SPDR Bloomberg Barclays Intermediate Term Treasury ETF (ITE US).

Noel Archard, global head of product for State Street’s SPDR ETF business.

Noel Archard, global head of product for State Street’s SPDR ETF business.

SPTS now tracks the Bloomberg Barclays 1-3 Year US Treasury Index after previously tracking the longer-dated Bloomberg Barclays 1-5 Year US Treasury Index. The shorter-dated benchmark tracks US Treasury bonds with terms to maturity between one and three years.

The ETF has an expense ratio of 0.06% and current assets under management of $343 million.

ITE has moved to the Bloomberg Barclays 3-10 Year US Treasury Index from the Bloomberg Barclays Intermediate US Treasury Index. The new index tracks medium duration US Treasury bonds with remaining maturities of between three and ten years.

The ETF has a TER of 0.10%—slightly higher than that of SPTS—and current AUM of $660m.

The funds’ names, ticker symbols and expense ratios remain unchanged and no action is required by shareholders.

Noel Archard, global head of product for State Street Street’s SPDR ETF business, commented, “With these changes, our suite of Treasury bond SPDR ETFs will offer more precise exposure to various segments of the US Treasury market.”

With these changes, our suite of Treasury bond SPDR ETFs will offer more precise exposure to various segments of the US Treasury market.”
Noel Archard, global head of product for SPDR ETFs

Investors seeking longer-term US Treasury exposure can opt for the SPDR Portfolio Long Term Treasury ETF (SPTL US), which invests in US Treasuries that have a remaining maturity of ten years or more. The fund tracks the Bloomberg Barclays Long US Treasury Index.

The ETF comes with a TER of 0.06% and has current AUM of $812m.

Collectively, the three ETFs provide investors with additional tools to more precisely manage their duration exposure by shifting along the yield curve.

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