The SPDR Barclays 0-5 Year Sterling Corporate Bond UCITS ETF will track the Barclays 0-5 Year Sterling Corporate Bond Index and was listed on the Deutsche Börse, Xetra, today.
SSgA said short maturity ETFs can be used to either over or underweight specific regions and currencies and build more bespoke exposures across the yield curve. Short maturity corporate indices tracked by SPDR ETFs hold all bonds until maturity, which has the effect of lowering duration and portfolio turnover while maintaining diversification.
Eleanor Hope-Bell, head of SPDR UK at SSgA, said: “Higher coupons from corporate bonds helped offset some of the negative impact of rising gilt and treasury yields in 2013.
“In the current environment, with speculation growing that the interest rates cycle is turning, short-maturity ETFs should be a useful tactical tool, allowing investors to earn yield while remaining flexible.”
