SSGA launches low-cost US Treasuries ETF

May 22nd, 2024 | By | Category: Fixed Income

State Street Global Advisors (SSGA) has expanded its suite of low-cost, core portfolio ETFs with a new fund providing exposure to US Treasuries from across the yield curve.

Allison Bonds Mazza, Head of Intermediary at State Street Global Advisors.

Allison Bonds Mazza, Head of Intermediary at State Street Global Advisors.

The SPDR Portfolio Treasury ETF (SPTB US) has been listed on NYSE Arca with an expense ratio of just 0.03%.

The fund is linked to the Bloomberg US Treasury Index which represents the market value-weighted performance of US Treasury securities with greater than one year remaining until maturity.

The index includes US dollar-denominated, fixed-rate, and original zero-coupon securities with minimum outstanding par amounts of at least $300 million. Excluded from the index are inflation-linked securities, floating rate notes, and zero-coupon STRIPS.

The index is rebalanced each month.

SPTB complements SSGA’s existing low-cost US Treasury lineup, which includes ETFs targeting various maturities: short-term (one to three years), intermediate-term (three to ten years), and long-term (greater than ten years).

The funds in this lineup are the SPDR Portfolio Short Term Treasury ETF (SPTS US), SPDR Portfolio Intermediate Term Treasury ETF (SPTI US), and SPDR Portfolio Long Term Treasury ETF (SPTL US), each priced at 0.03%.

Allison Bonds Mazza, Head of Intermediary at State Street Global Advisors, commented: “We continue to see fixed income ETFs used to tailor portfolios, allowing for greater flexibility, customized allocations, and targeted investment outcomes. With the addition of SPTB, our low-cost SPDR Portfolio suite now offers investors a complete set of cost-effective tools to disaggregate the Bloomberg US Aggregate Bond Index by sector as well as maturity.”

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