State Street Global Advisors (SSgA)*, the asset management
business of State Street Corporation (NYSE: STT), today announced
that the SPDR® Barclays Capital Short Term Treasury ETF (Symbol:
SST) and the SPDR Barclays Capital Investment Grade Floating Rate
ETF (Symbol: FLRN) began trading on the NYSE Arca on December 1,
2011. The addition of these two exchange traded funds (ETFs)
strengthens State Street’s family of fixed income ETFs, which now
includes 26 SPDR ETFs that provide precise access to a wide range
of fixed income investments.
The SPDR Barclays Capital Short Term Treasury ETF is the first
ETF designed to track the performance of the Barclays Capital 1-5
Year U.S. Treasury Index. The Index includes all publicly issued US
Treasury securities that have a remaining maturity of greater than
or equal to one year and less than five years, are rated investment
grade, and have $250 million or more of outstanding face value. As
of November 18, 2011, there were approximately 114 securities
included in the Index with an average maturity of 2.8 years. The
SPDR Barclays Capital Short Term Treasury ETF’s expense ratio is
0.12 percent.
“With short-term interest rates near zero, the potential for a
rising interest rate environment is a concern for many investors in
long-term Treasury bonds,” said James Ross, senior managing
director and global head of SPDR Exchange Traded Funds at State
Street Global Advisors. “The launch of the SPDR Barclays Capital
Short Term Treasury ETF enhances our short-term government bond
SPDR ETF offering, which also includes the SPDR Barclays Capital
1-3 Month T-Bill ETF.”
The SPDR Barclays Capital Investment Grade Floating Rate ETF is
designed to track the performance of the Barclays Capital U.S.
Dollar Floating Rate Note < 5 Years Index. The Index includes US
dollar-denominated, investment grade floating rate notes that have
a remaining maturity of greater than or equal to one month and less
than five years, and have $300 million or more of outstanding face
value. As of November 18, 2011, there were approximately 320
securities in the Index with an average maturity of 1.71 years. The
SPDR Barclays Capital Investment Grade Floating Rate ETF’s expense
ratio is 0.15 percent.
Floating rate notes, which are often referred to as “FRNs” or
“floaters,” are debt issues with variable coupon payments that are
based on a reference rate, such as 3-month LIBOR with a fixed
spread. Coupons are reset periodically and can rise or fall with
changes in the reference rate while the spread remains
constant.
“With cost efficient access to floating rate notes, an asset
class that is also well positioned for a rising rate environment
and features low correlations to many traditional equity and fixed
income investments, the SPDR Barclays Capital Investment Grade
Floating Rate ETF offers a compelling solution to investors seeking
to enhance the diversification of their bond portfolio,” said
Ross.
State Street manages more than $245** billion in SPDR ETF assets
worldwide (as of September 30, 2011) and is one of the largest ETF
providers globally.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are managed by
SSgA Funds Management, Inc., a registered investment adviser and
wholly owned subsidiary of State Street Bank and Trust Company. The
funds provide professional investors with the flexibility to select
investments that are precisely aligned to their investment
strategy. Recognized as the industry pioneer, State Street created
the first ETF in 1993 (SPDR S&P 500® – Ticker SPY). Since then,
we’ve sustained our place as an industry innovator through the
introduction of many ground-breaking products, including
first-to-market launches with gold, international real estate,
international fixed income and sector ETFs. For more information,
visit www.spdrs.com.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors
worldwide for its disciplined investment process, powerful global
investment platform and access to every major asset class,
capitalization range and style. SSgA is the asset management
business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a
registered investment adviser and wholly owned subsidiary of State
Street Bank & Trust Company.
**This AUM includes the assets of the SPDR Gold Trust (approx.
$64 billion as of September 30, 2011), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors
serves as the marketing agent.
IMPORTANT RISK INFORMATION
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Frequent trading of ETF could significantly increase commissions
and other costs such that they may offset any savings from low fees
or costs.
"SPDR" is a registered trademark of Standard & Poor's
Financial Services LLC ("S&P") and has been licensed for use by
State Street Corporation. STANDARD & POOR'S, S&P, S&P
500 and S&P MIDCAP 400 are registered trademarks of Standard
& Poor's Financial Services LLC. No financial product offered
by State Street Corporation or its affiliates is sponsored,
endorsed, sold or promoted by S&P or its affiliates, and
S&P and its affiliates make no representation, warranty or
condition regarding the advisability of buying, selling or holding
units/shares in such products. Further limitations and important
information that could affect investors' rights are described in
the prospectus for the applicable product.
Securities with floating or variable interest rates may decline
in value if their coupon rates do not keep pace with comparable
market interest rates. Narrowly focused investments typically
exhibit higher volatility and are subject to greater geographic or
asset class risk. The Fund is subject to credit risk, which refers
to the possibility that the debt issuers will not be able to make
principal and interest payments.
Bond funds contain interest rate risk (as interest rates rise
bond prices usually fall); the risk of issuer default; issuer
credit risk; liquidity risk; and inflation risk.
Distributor: State Street Global Markets, LLC, member FINRA,
SIPC, a wholly owned subsidiary of State Street Corporation.
References to State Street may include State Street Corporation and
its affiliates. Certain State Street affiliates provide services
and receive fees from the SPDR ETFs.
Before investing, consider the funds' investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
866.787.2257 or visit www.spdrs.com. Read it
carefully.
2011 State Street Corporation. All Rights Reserved.
CORP-0426Exp. Date 01/20/2012
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