State Street Launches Convertible Bond ETF

April 17, 2009 ( - SSgA, the investment management arm of State Street Corporation, said the SPDR Barclays Capital Convertible Bond ETF has started trading on the NYSE Arca.

The ETF, which has an expense ratio of 40 basis points, seeks to track the price and yield performance of the Barclays Capital U.S. Convertible Bond >$500MM Index.  

Convertible bonds are bonds that can be exchanged, at the option of the holder, for a specific number of shares of the issuer’s preferred or common stock.  

“As the first ETF to provide exposure to the benefits of convertible bonds, the SPDR Barclays Capital Convertible Bond ETF underscores our commitment to develop innovative ETFs for investors seeking precise access to all segments of the market,” said James Ross, senior managing director at State Street Global Advisors, in an announcement.