With an annual expense ratio of 0.40%, the new SPDR ETF provides investors access to high yield corporate bonds with short durations, which tend to be less volatile to changes in interest rates than debt securities with longer durations.
The ETF seeks to track the performance of the Barclays Capital 0-5 Cash Pay Constrained High Yield Index, which includes fixed rate, taxable corporate bonds of at least $350m in issuance size that have a remaining maturity of less than five years.
SSgA senior managing director and global head of SPDR ETFs James Ross said that the ETF provides investors and advisors with an opportunity to gain cost efficient access to short term high yield bonds, a segment of the high yield market that can help to protect against an inevitable rise in interest rates.
