State Street Launches Short-Term Corporate Bond ETF
December 22nd at 3:00pm by Tom Lydon
As risk slowly re-enters the market, corporate bond exchange traded funds (ETFs) have found increasing appeal. Companies have sold more than $1 trillion in new bonds this year, so it makes the timing of State Street’s new bond fund especially appealing.
SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB) invests only in investment-grade (with an average credit quality of A2/A3) short-term corporate bonds that are typically less sensitive to interest rate movements than intermediate or long-term bonds. [How to avoid a bond ETF bubble.]
The 0.12% expense ratio is a strong feature of this fund, too, reports Ron Rowland for Seeking Alpha. The underlying index has 572 holdings, a 1.9 year adjusted duration, and a 2.69% yield. [How to research bond ETFs.]
A few of the top weighted companies in the fund include:
- Goldman Sachs Group, 5.6%
- Conoco Funding, 4.6%
- General Electric, 4.5%
- Citigroup, 4.4%
- New Cingular Wireless, 3.9%
For more stories about bond ETFs, visit our bond ETF category.
