State Street Global Advisors filed with the Securities and Exchange Commission to offer an investment grade corporate bond exchange traded fund (ETF) that will use fundamental factors to screen securities.
Olivier Ludwig for Index Universe reports that the SPDR Barclays Capital Issuer Scored Corporate Bond ETF will hold dollar-denominated, fixed rate, nonconvertible bonds from publicly traded companies that are rated Baa3/BBB- or higher. No trading symbol or an expense ratio was include with the filing. [Investors and the Corporate Bond ETF Love Affair.]
The proposed ETF will hold corporate debt from industrial, utility and financial institutions, the filing said. Individual issuers in the index will be weighted using fundamental factors, including return on assets, interest coverage and current ratio, which is a measure of a company’s ability to meet short-term debt obligations. [Fixed Income ETFs to Watch in 2011.]
Tisha Guerrero contributed to this article.
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