State Street Files for First International Corporate Bond ETF
March 9th at 3:00pm by Tom Lydon
State Street has filed for a new exchange traded fund (ETF) that’s also a first of its kind: a fund that tracks the international investment-grade corporate bond market.
The new fund: Barclays Capital International Corporate Bond (NYSEArca: IBND). The ETF is meant to track the performance of the Barclays Capital Global Aggregate ex-USD >$1B Corporate Bond Index. [12 ETFs to Play Fed Rate Hikes.]
To be included in the index, securities have to have an investment-grade rating from at least two agencies, a minimum $1 billion market cap and at least a year left until maturity. The ETF may purchase a subset of the securities in the index in an effort to hold a portfolio of securities with generally the same risk and return properties featured.
The index is designed to be a broad based measure of the global investment-grade, fixed rate, fixed-income corporate markets outside the United States. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month. [Why Fixed-Income ETFs are Popular Now.]
For more stories about new ETFs, visit our new ETFs category.
