A State Street news release said the new offerings are designed to provide investors with exposure to precise segments of the fixed income market. The new ETFs began trading on the NYSE Arca on Tuesday.
The SPDR Barclays Capital Short Term International Treasury Bond ETF is designed to track the price and yield performance of the Barclays Capital 1-3 Year Global Treasury ex-US Capped Index.
As of December 31, 2008, the Index included 229 issues with remaining maturities of one to three years from 21 investment-grade countries outside of the United States. The SPDR Barclays Capital Short Term International Treasury Bond ETF’s expense ratio is 0.35%.
Meanwhile, according to the company, the SPDR Barclays Capital Mortgage Backed Bond ETF is designed to track the price and yield of the Barclays Capital U.S. MBS Index. The MBS Index measures the performance of the U.S. agency mortgage pass-through segment of the U.S. investment grade bond market.
As of December 31, 2008, the Index included 1,727 issues and an average credit quality rating of AAA/Aaa. The SPDR Barclays Capital Mortgage Backed Bond ETF’s expense ratio is 0.20%.
“Recent market volatility has increased demand for fixed income ETFs that provide efficient and cost-effective exposure to markets that help investors enhance the diversification of their fixed income holdings,” said James Ross, senior managing director at State Street Global Advisors.