SSGA cuts fees on two SPDR ETFs

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

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State Street Global Advisors has announced it is reducing the fees charged on two of its SPDR-branded ETFs listed in the 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.

The net expense ratio for the SPDR Bloomberg Barclays Mortgage Backed Bond ETF (MBG US) will be reduced from 0.20% to 0.06%, effective 30 May 2018, and the SPDR Bloomberg Barclays Issuer Scored Corporate Bond ETF (CBND US) will be lowered from 0.16% to 0.06%, effective 31 July 2018.

“We are always looking to make enhancements to benefit investors,” said Noel Archard, global head of product for State Street Global Advisors’ SPDR ETF business. “By lowering costs and improving access to an array of investment exposures, these changes will help to ensure our clients and these SPDR ETFs are well positioned for long-term growth.”

MBG tracks the Bloomberg Barclays US MBS Index, which measures the performance of investment grade US agency mortgage pass-through securities. US agency mortgage pass-through securities are backed by pools of mortgages and issued by one of the following US government-sponsored enterprises: Government National Mortgage Association; Federal National Mortgage Association and Federal Home Loan Mortgage Corporation.

In addition to a lower expense ratio, the SPDR Bloomberg Barclays Issuer Scored Corporate Bond ETF will also change its underlying index and fund name, effective 31 July 2018.

The fund will be renamed the SPDR Bloomberg Barclays Corporate Bond ETF and will track the Bloomberg Barclays US Corporate Bond Index. Its ticker code will remain unchanged.

The Bloomberg Barclays US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

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