Adding to a string of new exchange-traded funds, State Street Global Advisors has just introduced the SPDR Barclays Capital Intermediate-Term Credit Bond ETF (ITR).
"With current yield spreads edging wider than they have been in more than 15 years, investment-grade corporate bonds are an attractive asset classes for investors seeking to further diversify their fixed income holdings or hedge against future interest-rate hikes," says James Ross, senior managing director at State Street Global Advisors.
The fund's underlying index includes investment grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to 1 year and less than 10 years. As of December 31, 2008, the index included 2,512 issues with an average credit rating of A and dollar-weighted maturity of 5.20 years. ITR's annual expense ratio is 0.15 percent.
Last month, State Street introduced the SPDR Barclays Capital Short Term International Treasury Bond Index ETF (BWZ) and the SPDR Barclays Capital Mortgage Backed Bond Index ETF (MBG). State Street now manages 15 bond ETFs.