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.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.