SPDR® Nuveen Municipal Bond ETF
Developed to Help Investors Navigate Bond Market
Uncertainty
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the SPDR Nuveen Municipal Bond ETF (MBND). Developed by State
Street Global Advisors and Nuveen, the global investment manager of
Teachers Insurance and Annuity Association of America (“TIAA”),
MBND is an actively managed ETF that enhances the SPDR municipal
bond ETF suite, which currently comprises three index-based ETFs -
SPDR Nuveen Bloomberg Barclays Municipal Bond ETF (TFI), SPDR
Nuveen Bloomberg Barclays High Yield Municipal Bond ETF (HYMB), and
SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF
(SHM).
“We’re excited to expand our relationship with Nuveen, a
recognized leader in municipal bond investing, by offering a fund
that aims to identify undervalued opportunities in the muni bond
market and generate tax-exempt income,” said Sue Thompson, head of
SPDR Americas Distribution at State Street Global Advisors. “Given
the challenges facing fixed income investors after more than a
decade of falling interest rates, we believe an actively managed
municipal bond ETF can add value to client portfolios.”
The SPDR Nuveen Municipal Bond ETF seeks to provide current
income that is exempt from federal income taxes. Capital
appreciation is a secondary objective when consistent with MBND’s
primary objective. In selecting securities for MBND, Nuveen
utilizes a rules-based, value-oriented strategy designed to
identify higher-yielding and undervalued municipal bonds that offer
above-average total return potential. This approach combines
top-down duration, sector, and credit quality guidance provided by
Nuveen’s investment committee with deep credit research from one of
the industry’s largest teams.
The ETF targets a weighted average duration between 4.5 and 7
years and a weighted average maturity between 5 and 12 years. MBND
is managed by Timothy Ryan and Steven Hlavin, portfolio managers at
Nuveen, and has a gross expense ratio of 40 basis points
(0.40%).
“As the search for yield continues to be top of mind for
investors in the current low-rate environment, recent monetary
policy and liquidity support may create significant tailwinds for
municipal bonds,” said Timothy Ryan, portfolio manager and managing
director at Nuveen. “We think an actively managed municipal
strategy offers investors an opportunity to generate additional
yield from the key tax benefits offered by municipal
investments.”
SSGA Funds Management, Inc. serves as investment adviser to MBND
and Nuveen Asset Management, LLC serves as investment sub-adviser
to MBND.
For more information on the SPDR ETF suite, visit
www.ssga.com/etfs.
About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive
range of outcome-focused investment solutions designed to secure
the long-term financial goals of institutional and individual
investors. Nuveen has $1.2 trillion in assets under management as
of 31 Dec 2020 and operations in 27 countries. Its investment
specialists offer deep expertise across a comprehensive range of
traditional and alternative investments through a wide array of
vehicles and customized strategies. For more information, please
visit www.nuveen.com.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are sponsored
by affiliates of State Street Global Advisors. The funds provide
investors with the flexibility to select investments that are
aligned to their investment strategy. For more information, visit
www.ssga.com/etfs.
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 US $3.47 trillion* under
our care.
*This figure is presented as of December 31, 2020 and includes
approximately $75.17 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 Risk Disclosures
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.
MBND’s investments are subject to changes in general economic
conditions, general market fluctuations and the risks inherent in
investment in securities markets.
The values of debt securities may increase or decrease as a
result of the following: market fluctuations, changes in interest
rates, actual or perceived inability or unwillingness of issuers,
guarantors or liquidity providers to make scheduled principal or
interest payments or illiquidity in debt securities markets; the
risk of low rates of return due to reinvestment of securities
during periods of falling interest rates or repayment by issuers
with higher coupon or interest rates; and/or the risk of low income
due to falling interest rates.
The values of municipal obligations may be adversely affected by
local political and economic conditions and developments. In
addition, the values of municipal obligations that depend on a
specific revenue source to fund their payment obligations may
fluctuate as a result of actual or anticipated changes in the cash
flows generated by the revenue source or changes in the priority of
the municipal obligation to receive the cash flows generated by the
revenue source. In addition, changes in federal tax laws or the
activity of an issuer may adversely affect the tax-exempt status of
municipal obligations and may result in a significant decline in
the values of such municipal obligations.
MBND is actively managed. The sub-adviser’s judgments about the
attractiveness, relative value, or potential appreciation of a
particular sector, security, commodity or investment strategy may
prove to be incorrect, and may cause the fund to incur losses.
There can be no assurance that the sub-adviser’s investment
techniques and decisions will produce the desired results.
Standard & Poor's®, S&P® and SPDR® are registered
trademarks of Standard & Poor’s Financial Services LLC
(S&P); Dow Jones is a registered trademark of Dow Jones
Trademark Holdings LLC (Dow Jones); and these trademarks have been
licensed for use by S&P Dow Jones Indices LLC (SPDJI) and
sublicensed for certain purposes by State Street Corporation. State
Street Corporation’s financial products are not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and third party licensors and none of such
parties make any representation regarding the advisability of
investing in such product(s) nor do they have any liability in
relation thereto, including for any errors, omissions, or
interruptions of any index.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect 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.
SSGA Funds Management, Inc. has retained Nuveen Asset Management
as the investment sub-adviser to the fund. State Street Global
Advisors Funds Distributors, LLC is not affiliated with Nuveen
Asset Management.
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.ssga.com. Read it carefully.
© 2021 State Street Corporation.
All Rights Reserved.
3420459.1.1.AM.RTL Exp. Date:
01/31/2022
Not FDIC Insured No Bank
Guarantee May Lose Value
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version on businesswire.com: https://www.businesswire.com/news/home/20210204005663/en/
Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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