State Street Global Advisors is set to launch five new ETFs. The funds will begin trading May 30 on the American Stock Exchange.
State Street Global Advisors (SSgA)(a), the investment management arm of State Street Corporation (NYSE: STT), today announced five new fixed income SPDRsSM exchange traded funds (ETFs) will begin trading on the American Stock Exchange (Amex) on May 30.
Providing precise, low-cost¹ access to an array of fixed income segments and maturities, the five new SPDRs include:
ETF Name Ticker Index Description Expense Ratio
SPDR® Lehman 1-3 Month T-Bill BIL The Lehman Brothers 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. 0.13%
SPDR® Barclays TIPS ETF IPE The Barclays US Government Inflation-Linked Index includes publicly issued, U.S. Treasury inflation protected securities that have at least 1 year remaining to maturity on index rebalancing date, with an issue size equal to or exceeding $500 million. 0.18%
SPDR® Lehman Aggregate Bond ETF LAG The Lehman Brothers U.S. Aggregate Index provides a measure of the performance of the U.S. dollar denominated investment grade bond market.
SPDR® Lehman Intermediate Term Treasury ETF ITE The Lehman Brothers Intermediate U.S. Treasury Index includes all publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to 1 year and less than 10 years, are rated investment grade, and have $250 million or more of outstanding face value. 0.13%
SPDR® Lehman Long Term Treasury ETF TLO The Lehman Brothers Long U.S. Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more in outstanding face value. 0.13%
“Our new family of fixed income SPDRs is designed to help investors create and manage well-diversified, cost-effective portfolios,” said Anthony Rochte, senior managing director of State Street Global Advisors. “Spanning the spectrum of short, intermediate, and long-term maturities and providing new access to T-Bills and the 10-plus-year segment of the market, the fixed income SPDRs are a compelling addition to our ETF offering.”
State Street Global Advisors has managed fixed income index funds since 1984. Today, the firm manages more than $800 billion in total fixed income and cash (as of March 31, 2007) globally.
State Street manages more than $114 billion in ETF assets worldwide (as of March 31, 2007) and is one of the largest providers in the United States and globally, with a market share of nearly 20 percent.(b)
About State Street Global Advisors
State Street Global Advisors, the investment management arm of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With US$1.8 trillion in assets under management as of March 31, 2007, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 25 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.
(a) The Funds are advised by SSgA Funds Management Inc., a registered investment adviser and a wholly owned subsidiary of SSgA.
(b) Source: State Street Global Advisors as of March 31, 2007
ETFs trade like a stock and are subject to market risk.
Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; and inflation risk.
¹Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
(c) The Fund’s Adviser has contractually agreed to waive its advisory fee and reimburse certain expenses, until May 23, 2008, so that the Net Annual Operating Expenses are limited to 0.13% of the Fund’s average daily net assets. The Adviser may continue such waiver from year to year, but there is no guarantee that the Adviser will do so and after May 23, 2008, it may be cancelled or modified at any time.
The “SPDRs” trademark is used under license from The McGraw-Hill Companies, Inc. (McGraw-Hill). No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by McGraw-Hill.
Lehman Brothers, Lehman Brothers Inc. are trademarks of Lehman Brothers Inc. and have been licensed for use in connection with the listing and trading of the SPDR Lehman ETFs on the Amex. The products are not sponsored by, endorsed, sold or promoted by Lehman Brothers Inc. and Lehman Brothers Inc. makes no representation regarding the advisability of investing in them.
"Barclays Capital” is a trademark of Barclays Capital, the investment banking division of Barclays Bank PLC (“Barclays Capital”) and is used by State Street Global Advisors under license. Barclays Capital compiles, maintains and owns rights in and to the Barclays US Government Inflation-Linked Index. The SPDR Barclays TIPS ETF is not sponsored, endorsed, sold or promoted by Barclays Capital. Barclays Capital or one of its affiliated entities may act as an Authorized Participant and/or as an initial purchaser of shares of the SPDR Barclays TIPS ETF. Barclays Capital makes no representation regarding the advisability of investing in the SPDR Barclays TIPS ETF or use of either the Barclays US Government Inflation-Linked Index or any data included therein.
Distributor: State Street Global Markets, LLC, member NASD, SIPC.
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