Enhancements to two SPDR Fixed Income ETFs designed to meet
evolving needs of today’s investors
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced several
enhancements to two high yield bond ETFs with a combined $8.8
billion in assets. A 1:3 reverse share split will be implemented to
reduce trading costs for the SPDR Bloomberg Barclays High Yield
Bond ETF (JNK). In addition, the SPDR ICE BofAML Crossover
Corporate Bond ETF (CJNK) will change its index strategy and name,
and decrease its expense ratio by 25 basis points to provide
investors with low cost, broad high yield exposure.
“With over $400 billion in indexed fixed income assets and more
than 100 fixed income professionals, we are a leader in fixed
income investing. As such, we are continuously looking for
opportunities to develop and refine solutions that better meet the
needs of investors,” said Noel Archard, global head of SPDR
product. “JNK’s increased share price will appeal to investors who
favor its large trading volumes and optionality, and with CJNK’s
lower expense ratio and new index strategy, we are able to offer
diversified, low cost exposure to investors who view high yield as
a strategic asset class in buy-and-hold portfolios.”
Reverse Share Split to Reduce Trading
Costs
The 1:3 reverse share split for the SPDR Bloomberg Barclays High
Yield Bond ETF raises its share price to approximately $105,
helping to reduce trading costs for clients seeking liquid exposure
to high yield bonds. The shares will trade at their post-reverse
split price effective April 1, 2019.
As a result of the planned action, shareholders of JNK have the
potential to hold fractional shares; the treatment of those shares
will be dependent upon custodial relationships, with some
shareholders receiving cash in lieu of fractional shares.
Lower Expense Ratio and New Index
Strategy
Effective on April 1, 2019, the SPDR ICE BofAML Crossover
Corporate Bond ETF will change its underlying index, fund name and
net expense ratio as detailed below.
CurrentFund
CurrentIndex
NewFund
NewIndex
GrossExpense
NewGross
SharePrice
Name(Ticker)
Name(Ticker)
Ratio
ExpenseRatio
(NoChange)
SPDRICEBofAMLCrossoverCorporateBond
ETF(CJNK)
ICEBofAMLUSDiversifiedCrossoverCorporateIndex
SPDRICEBofAMLBroadHighYieldBondETF(CJNK)
ICEBofAMLUS HighYieldIndex
0.40% 0.15%
$25.581
State Street Global Advisors’ SPDR ETF offering now includes 140
US-listed SPDR ETFs representing over $601 billion in assets.2
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) and has remained on the
forefront of responsible innovation, as evidenced by 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
For four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of active and
index strategies to create cost-effective solutions. As stewards,
we help portfolio companies see that what is fair for people and
sustainable for the planet can deliver long-term performance. And,
as pioneers in index, ETF, and ESG investing, we are always
inventing new ways to invest. As a result, we have become the
world’s third largest asset manager with nearly US $2.51 trillion*
under our care.
* This figure is presented as of December 31, 2018 and includes
approximately $32.44 billion of assets with respect to SPDR
products for which State Street Global Advisors Funds Distributors,
LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
Important Information
Investing involves risk including the risk of loss of
principal.
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.
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,
and all unit investment trusts. ALPS Portfolio Solutions
Distributor, Inc. is distributor for Select Sector SPDRs. ALPS
Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc.
are not affiliated with State Street Global Markets, LLC.
Before investing, consider the funds' investment objectives,
risks, charges and expenses. To obtain a prospectus which contains
this and other information, call 1-866-787-2257 or visit
www.spdrs.com. Read it carefully.
Not FDIC Insured • No Bank Guarantee • May Lose Value
2438466.1.1.AM.RTLExpiration date: 03/01/2020
1 As of 2/27/20192 Source: Bloomberg Finance L.P., as of
01/31/2019
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version on businesswire.com: https://www.businesswire.com/news/home/20190301005437/en/
State Street CorporationOlivia Offner+1
617-662-0198ooffner@statestreet.com
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