SPDR’s first fixed income ETF built on liquidity
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the SPDR MarketAxess Investment Grade 400 Corporate Bond ETF
(LQIG). Designed to blend the advantages of an ETF with the
tradability benefits of investing in US Investment grade corporate
bonds with higher liquidity compared to the broader U.S. corporate
bond market, LQIG offers investors credit exposure with the
potential for tighter bid-ask spreads, lower premium/discounts, and
more transparency into the underlying holdings’ real-time
valuations.
“The growth of electronic bond trading volume coupled with the
increasing adoption of fixed income ETFs is bringing the benefits
of bond liquidity to all investors,” said Rory Tobin, Global Head
of SPDR ETF Business at State Street Global Advisors. “Given State
Street’s heritage as a liquidity leader in the ETF market, we’re
excited to be working with MarketAxess, one of the world’s largest
electronic fixed income trading venues, to launch LQIG. This
innovative SPDR ETF is designed to provide bond investors with
access to U.S. corporate bonds with higher relative liquidity and
tradability.”
Fixed income markets are evolving with smarter electronic
trading protocols, more sophisticated, automated investment
strategies and greater availability of useful data. MarketAxess US
Investment Grade 400 Corporate Bond Index is a more data-driven
approach to indexation and is paving the way for improved index and
portfolio construction.
The SPDR MarketAxess Investment Grade 400 Corporate Bond ETF
seeks to track the MarketAxess U.S. Investment Grade 400 Corporate
Bond Index. The Index measures the performance of 400 U.S. dollar
denominated investment grade corporate bonds with
higher-than-average liquidity relative to the broader U.S.
corporate bond market. Powered by MarketAxess’ proprietary
liquidity and pricing data – Relative Liquidity Score and
Composite+™ pricing engine – the Index combines actionable
liquidity with broad market exposure. MarketAxess’ data
capabilities support real-time pricing, liquidity assessment and
valuation, allowing for greater transparency and tradability.
“Most fixed income indices are designed to reflect an investment
with broad market exposure and not for tradable products where the
underlying components are regularly available. By contrast, the
MarketAxess U.S. Investment Grade 400 Corporate Bond Index,
launched last month, prioritizes liquidity, transparency, and a
high availability of the constituent bonds,” said Chris Concannon,
President and Chief Operating Officer at MarketAxess. “We believe
the launch of LQIG will be instrumental in supporting increased
tradability in the traditionally fragmented and less liquid fixed
income market.”
SPDR believes innovation in indexation will be a catalyst for
further development in the fixed income market.
For more information on the SPDR MarketAxess Investment Grade
400 Corporate Bond ETF, visit www.ssga.com/etfs.
Click here to read our white paper Closing the Fixed Income
Evolutionary Gap.
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 MarketAxess
MarketAxess (Nasdaq: MKTX) operates a leading electronic trading
platform that delivers greater trading efficiency, a diversified
pool of liquidity and significant cost savings to institutional
investors and broker-dealers across the global fixed-income
markets. Nearly 1,900 firms leverage MarketAxess’ patented
technology to efficiently trade fixed-income securities.
MarketAxess’ award-winning Open Trading® marketplace is widely
regarded as the preferred all-to-all trading solution in the global
credit markets1. Founded in 2000, MarketAxess connects a robust
network of market participants through the full trading lifecycle,
including automated trading solutions, intelligent data products
and a range of post-trade services. Learn more at
www.marketaxess.com and on Twitter @MarketAxess.
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 index and
active 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 fourth-largest asset manager* with US $4.02 trillion† under
our care.
*Pensions & Investments Research Center, as of 12/31/20.
†This figure is presented as of March 31, 2022 and includes
approximately $73.35 billion USD 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.
1 2019 Composite+™ wins Waters Technology Rankings Award for
‘Best Artificial Intelligence Technology Provider.’
Important Risk Disclosures
This communication is not intended to be an investment
recommendation or investment advice and should not be relied upon
as such.
The value of the debt securities may increase or decrease as a
result of the following: market fluctuations, increases in interest
rates, inability of issuers to repay principal and interest or
illiquidity in the 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. To the extent that interest rates rise, certain
underlying obligations may be paid off substantially slower than
originally anticipated and the value of those securities may fall
sharply. This may result in a reduction in income from debt
securities income.
Investing involves risk of 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.
Passively managed funds invest 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.
While the shares of ETFs are tradable on secondary markets, they
may not readily trade in all market conditions and may trade at
significant discounts in periods of market stress.
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or transmitted or any of its contents disclosed to third parties
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The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
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take into account any investor's particular investment objectives,
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The MarketAxess Index is the exclusive property of MarketAxess
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Before investing, consider the funds’ investment objectives,
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prospectus or summary prospectus containing this and other
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Please read the prospectus carefully before investing.
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.
State Street Global Advisors, One Iron Street, Boston MA 02210.
© 2022 State Street Corporation. All Rights Reserved.
Not FDIC Insured • No Bank Guarantee • May Lose Value
4225628.1.1.AM.RTL Exp. Date: 05/31/2023
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Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
Marisha Mistry mmistry@marketaxess.com
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