SSGA cuts fees on five core corporate bond ETFs in Europe

Dec 15th, 2020 | By | Category: Fixed Income

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State Street Global Advisors (SSGA) has reduced the fees charged on five European-domiciled fixed income ETFs.

SSGA cuts fees on five core corporate bond ETFs in Europe

State Street Global Advisors has cut the fees on five core corporate bond ETFs listed in Europe.

The funds in question are referenced to indices from Bloomberg and offer mainstream corporate bond exposures.

Collectively they house more than $1.1 billion in assets under management.

Three of the ETFs target particular maturity segments (0-3 year, 1-10 year, and 10+ year) within the universe of US dollar-denominated, investment-grade corporate bonds.

These are the $65 million SPDR Bloomberg Barclays 0-3 Year US Corporate Bond UCITS ETF, $105m SPDR Bloomberg Barclays 1-10 Year US Corporate Bond UCITS ETF, and $145m SPDR Bloomberg Barclays 10+ Year US Corporate Bond UCITS ETF. Each has reduced its expense ratio from 0.20% to 0.12%.

A fourth fund is the $155m SPDR Bloomberg Barclays 0-5 Year US High Yield Bond UCITS ETF which has been reduced from 0.40% to 0.30%. This fund provides exposure to US dollar-denominated, high-yield bonds with remaining maturities under five years.

Finally, the €570 million SPDR Bloomberg Barclays Euro Corporate Bond UCITS ETF has had its expense ratio reduced from 0.20% to 0.12%. It covers the entire maturity spectrum of euro-denominated, investment-grade corporate securities.

Each Bloomberg index includes fixed-rate bonds from industrial, utility, and financial issuers globally. Eligible issues must have at least $300m or €300m outstanding.

These latest fee reductions come just one month after SSGA introduced a lower-cost, accumulating share class of its €1.3bn SPDR Bloomberg Barclays Euro Government Bond UCITS ETF. This ETF is linked to the Bloomberg Barclays Euro Treasury Bond Index which consists of euro-denominated, investment-grade bonds from sovereign issuers located in the eurozone. Whereas the ETF’s original distributing share class has an expense ratio of 0.15%, the new accumulating class costs 0.10% and is available on Euronext Amsterdam (GOVA NA) in euros.

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