State Street Global Advisors (SSgA), the investment management arm of State Street Corporation, has just introduced the SPDR Barclays Capital Long Term Credit Bond ETF (LWC).
LWC provides market exposure to long- term (10-plus years) investment grade bonds, and the fund’s performance and yield are linked to the Barclays Capital U.S. Long Credit Index.
The underlying index contains investment grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to 10 years. As of December 31, 2008, the index included 965 issues with an average dollar-weighted maturity of 24.39 years.
“Demand for access to high quality, long term credit bonds is on the rise as investors search for alternatives to U.S. Treasuries that will improve the yield on their fixed income portfolios,” says Anthony Rochte, senior managing director at State Street Global Advisors. “
According to the company, the SPDR Barclays Capital Long Term Credit Bond ETF is the longest-maturity credit bond ETF available to investors and a key addition to our growing family of fixed-income SPDRs, which have attracted more than $800 million in net inflows in just the first two months of 2009.”
The fund’s annual expense ratio, as stated in the prospectus, is 0.15 percent.