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SPSB is also popular with investors due in part to its low fee. The fund charges just 0.07% per year, or $7 on a $10,000 investment.
“The fund’s holdings are concentrated at the lower end of the investment-grade spectrum, with considerable exposure to bonds rated A or BBB,” said Morningstar. “These securities represent more than 80% of the portfolio. This concentration is largely driven by banks and issuers in the telecommunications sector.”
Morningstar has a Bronze rating on SPSB.
For more fixed income investment solutions, visit the Fixed Income Channel.