State Street Global Advisors Launches Ultra Short Term Bond ETF
as the category captures more than $9 billion year to date1
State Street Global Advisors (SSgA)*, the asset management arm
of State Street Corporation (NYSE:STT), today announced the launch
of the SPDR SSgA Ultra Short Term Bond ETF (Symbol: ULST). The
newest actively managed SPDR ETF began trading on the NYSE Arca on
October 10, 2013, and provides investors with access to a
diversified portfolio of ultra short term bonds.
“The SPDR SSgA Ultra Short Term Bond ETF is an attractive option
for the cash investor who is seeking incremental yield but does not
want to sacrifice liquidity,” said James Ross, senior managing
director and global head of SPDR ETFs at SSgA. “We are seeing
tremendous flows year to date in short and ultra short term bonds,
as investors are increasingly anticipating rising interest
rates.”
“As one of the world’s leading cash and high quality fixed
income managers, our team has significant experience and a proven,
disciplined approach to credit research,” said Steve Meier, SSgA’s
chief investment officer of fixed income, cash and currency. “This
gives us the latitude to exploit inefficiencies in the fixed income
market allowing for opportunistic portfolio positioning.”
SSgA is one of the largest cash managers, with more than 30
years of experience, $385 billion in global cash assets and an
established track record as active manager of cash and fixed income
strategies through many market cycles.
The SPDR SSgA Ultra Short Term Bond ETF seeks to provide income,
preservation of capital and daily liquidity by primarily investing
in US dollar-denominated investment grade bonds that are rated a
minimum of A- or A3 and have an effective duration between three
and nine months. Portfolio holdings will include a range of fixed
and floating securities, including corporate obligations,
government bonds, agency securities and ETFs. The SPDR SSgA Ultra
Short Term Bond ETF’s expense ratio is 0.20 percent.
SSgA manages more than $337 billion** in SPDR ETF assets
worldwide (as of June 30, 2013) 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 Corporation. The funds
provide investors with the flexibility to select investments that
are precisely aligned to their investment strategy. Recognized as
an industry pioneer, State Street created the first US listed 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.
_____________________________________________
1 Source: Morningstar 9/30/13, Ultra Short Bond Fund Inflows
$9.4b
*SPDR ETFs are managed by SSgA Funds Management, Inc., a
registered investment adviser and wholly owned subsidiary of State
Street Corporation.
**This AUM includes the assets of the SPDR Gold Trust (approx.
$37 billion as of June 30, 2013), for which State Street Global
Markets, LLC, an affiliate of State Street Global Advisors, serves
as the marketing agent.
In general, ETFs can be expected to move up or down in value
with the value of the applicable index. Although ETF shares may be
bought and sold on the exchange through any brokerage account, ETF
shares are not individually redeemable from the Fund. Investors may
acquire ETFs and tender them for redemption through the Fund in
Creation Unit Aggregations only. Please see the prospectus for more
details.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETF's net asset value. Brokerage commissions and ETF expenses
will reduce returns.
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.
The Fund is actively managed and may underperform its
benchmarks. An investment in the fund is not appropriate for all
investors and is not intended to be a complete investment program.
Investing in the fund involves risks, including the risk that
investors may receive little or no return on the investment or that
investors may lose part or even all of the investment.
Actively managed ETFs do not seek to replicate the performance
of a specified index.
Non-diversified funds that focus on a relatively small number of
securities tend to be more volatile than diversified funds and the
market as a whole.
Investments in asset backed and mortgage backed securities are
subject to prepayment risk which can limit the potential for gain
during a declining interest rate environment and increases the
potential for loss in a rising interest rate environment.
Foreign investments involve greater risks than U.S. investments,
including political and economic risks and the risk of currency
fluctuations, all of which may be magnified in emerging markets.
Investments in smaller companies may involve greater risks than
those in larger, better known companies.
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.
The Fund is not a money market fund and does not seek to
maintain a stable net asset value of $1.00 per share.
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
1-866-787-2257, download a prospectus or summary prospectus now, or
talk to your financial advisor. Read it carefully before
investing.
CORP-0873
State Street CorporationElizabeth Bartlett,
+1-617-662-2903www.statestreet.com@StateStreetorRiver
CommunicationsTroy Mayclim, +1-914-686-5599
State Street (NYSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Street (NYSE:STT)
Historical Stock Chart
From Jul 2023 to Jul 2024