State Street Global Advisors’ New Short-Term TIPS SPDR ETF Seeks to Offer Inflation Protection for a Rising Rate Environment
February 27 2014 - 1:00PM
Business Wire
State Street Global Advisors (SSgA), the asset management arm of
State Street Corporation (NYSE:STT) today announced the SPDR
Barclays 0-5 Year TIPS ETF (Symbol: SIPE) began trading on the NYSE
Arca on February 27, 2014. The SPDR Barclays 0-5 Year TIPS ETF
gives investors a potential opportunity to protect their portfolios
from inflation and diversify their fixed income allocations to
prepare for rising interest rates. It adds to investors’ options in
the SPDR fixed-income product suite in a short-term TIPs
offering.
“With rising rates on the horizon, investors are increasingly
relying on ETFs to manage duration risk within their fixed-income
allocations,” continued Ross. “The new SPDR Barclays 0-5 Year TIPS
ETF seeks to offer these investors a hedge against inflation that’s
less sensitive to interest rate changes than longer duration TIPS
funds.”
The SPDR Barclays 0-5 Year TIPS ETF seeks to track the
performance of the Barclays 0-5 Year Government Inflation-linked
Bond Index, which includes publicly issued Treasury
Inflation-Protected Securities (TIPS), that have less than five
years remaining to maturity and an issue size of at least $500
million. It has an expense ratio of 0.15 percent.
SSgA manages more than $413 Billion in SPDR ETF assets worldwide
(as of December 31, 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 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 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.
*This AUM includes the assets of the SPDR Gold Trust (approx.
$30.8 billion as of December 31, 2013), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors,
serves as the marketing agent.
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.
The Fund invests by sampling the Index, holding a range of
securities that, in the aggregate, approximates the full Index in
terms of key risk factors and other characteristics. This may cause
the fund to experience tracking errors relative to performance of
the Index.
Increase in real interest rates can cause the price of
inflation-protected debt securities to decrease. Interest payments
on inflation-protected debt securities can be unpredictable.
90-day U.S. Treasury bills are insured and guaranteed by the
U.S. government. U.S. Treasury Bills maintain a stable value if
held to maturity, but returns are generally only slightly above the
inflation rate.
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.
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. ALPS Distributors, Inc., a
registered broker-dealer, is distributor for SPDR S&P 500, SPDR
S&P MidCap 400 and SPDR Dow Jones Industrial Average, all unit
investment trusts, ALPS Distributors, Inc. is not affiliated with
State Street Global Markets, LLC.
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 or visit www.spdrs.com. Read it
carefully.
CORP-096302/28/2015
State Street CorporationElizabeth Bartlett,
+1-617-662-2903www.statestreet.com@StateStreetorRiver
CommunicationsTroy Mayclim, +1-914-686-5599
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