SSGA expands range of European government bond ETFs

Dec 5th, 2014 | By | Category: Fixed Income

State Street Global Advisors (SSGA), the company behind the SPDR brand of exchange-traded funds, has announced the launch of the SPDR Barclays 3–5 Year Euro Government Bond UCITS ETF (SYB4) on the Deutsche Börse, Xetra.

SSGA expands range of European government bond SPDR ETFs

SSGA has expanded its range of European government bond ETFs with the launch of the SPDR Barclays 3–5 Year Euro Government Bond UCITS ETF on the Deutsche Börse.

The ETF adds to SSGA’s existing range of European government bond ETFs, which includes the short maturity SPDR Barclays 1-3 Year Euro Government Bond UCITS ETF and the all-maturities SPDR Barclays Euro Government Bond UCITS ETF.

All three ETFs allow investors to adjust the duration of their European government bond exposures.

The new ETF is linked to the Barclays 1-3 Year Euro Treasury Bond Index. This index measures the performance of the Eurozone government bond market and currently includes bonds from Austria, Belgium, Cyprus, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain. Only bonds issued in euros or legacy euro currencies with a maturity between one and up to (but not including) three years are included.

Commenting on the launch, Alexis Marinof, head of SPDR ETFs, EMEA, said: “In the current low yield environment investors have told us they want greater flexibility to adjust their position on the yield curve. This three to five year exposure gives investors access to a steeper segment of the yield curve, while still maintaining a relatively short maturity exposure.”

There are now 61 SPDR ETFs available across Europe. This follows the launch of the SPDR BofA Merrill Lynch 0–5 Year EM USD Government Bond UCITS ETF which commenced trading on the London Stock Exchange and Deutsche Börse in November.

Globally, SSGA manages more than $415bn in over 220 ETFs worldwide.

This latest fund has a total expense ratio of 0.15%.

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