SSgA said that the launched ETF will provides access to a new corporate bond indexing methodology, Issuer Scored Corporate Index Strategy, which s planned to launch soon.
The asset manager said that the new ETF is designed to provide an alternative to market value weighted index strategies. It seeks to track the performance of the Barclays Capital Issuer Scored Corporate Index, which includes publicly issued US dollar-denominated corporate issues that are rated investment grade and have $250m or more of par amount outstanding.
Individual issuers in the index will be weighted using the quantitative measures that inlcude: return on assets, interest coverage and current ratio. Rebalancing based on these ratios will occur every six months.
SSgA Fixed Income and Currency global chief investment officer said that the SPDR Barclays Capital Issuer Scored Corporate Bond ETF and forthcoming SSgA Issuer Scored Corporate Index Strategy strengthen the fixed income offering by providing investors and advisors with solutions that address the concerns some have with the allocation of capital in existing corporate credit index strategies.
SSgA said that SPDR Barclays Capital Issuer Scored Corporate Bond ETF has commenced trading on the NYSE Arca, and it will launch SSgA Issuer Scored Corporate Index Strategy soon.
