|SPDR Introduces Gilt ETFs|
|May 21, 2012 13:39 (CET)|
SPDR has added four new sterling fixed income ETFs to its rapidly growing European range.
The ETF platform of State Street Global Advisors has been beefing up its presence in the European market over the past two years, with 28 new ETFs added over the past 12 months. This includes a Deutsche Boerse/LSE-listed version of its flagship US S&P 500 ETF.
Three of the new launches—the SPDR Barclays Capital UK Gilt ETF, the SPDR Barclays Capital 1-5 Year Gilt ETF and the SPDR Barclays Capital 15+ Year Gilt ETF—give investors access to UK government bonds, while the fourth, the SPDR Barclays Capital Sterling Corporate Bond ETF, provides exposure to corporate bonds with investment grade ratings.
Eleanor Hope-Bell, head of intermediary sales UK at SSgA, said: “Fixed income ETFs provide investors with the tools they need to build fixed income portfolios that not only aim to support their long-term investment goals, but also offer the flexibility and liquidity needed to respond quickly to shifts in the bond markets.
“Today’s new listings offer investors exposure to core UK fixed income benchmarks using SPDR ETFs. By virtue of trading on exchanges and their subsequent relative pricing transparency and liquidity, our new fixed income SPDR ETFs can be used to adjust portfolios quickly in response to inflation, interest rates and shifts in the economy overall."
The new funds use physical replication and have been listed on both Deutsche Boerse and the London Stock Exchange. All have total expense ratios of 0.15 percent, except the Sterling Corporate Bond ETF, which has a TER of 0.2%.