According to the announcement, the fund is the first international bond ETF available to U.S. investors and is designed to provide precise, low-cost access to international fixed income, an asset class that has historically had a low correlation with U.S. stock and bond markets.
The SPDR Lehman International Treasury Bond ETF seeks to track the total return performance of the Lehman Brothers Global Treasury Ex-US Capped Index. The Index tracks fixed-rate local currency sovereign debt of investment grade countries outside of the U.S. As of August 31, 2007, the Index provided exposure to 674 issues from 18 countries denominated in 11 currencies.
The SPDR Lehman International Treasury Bond ETF has an annual expense ratio of 0.50%, the announcement said.
SSgA has launched a family of fixed income ETFs including the SPDR Lehman Municipal Bond ETFannounced on September 13 (See Municipal Bond ETF Offering Announced by State Street ).
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