State Street Corp.’s State Street Global Advisors (SSgA), the third-largest U.S. exchange traded fund issuer, said it is lowering the expense ratios on two of its ETFs.
Effective July 31, the SPDR Barclays Issuer Scored Corporate Bond ETF (NYSEARCA: CBND) will charge 0.06% per year, or $6 on a $10,000 investment, down from its current fee of 0.16%. CBND, which recently turned seven years old, follows the Bloomberg Barclays Issuer Scored Corporate Index.
The fund is a smart beta bond offering “that seeks to provide exposure to corporate issuers that have publicly traded equity using factors other than the market value of their outstanding debt,” according to SSgA.
CBND’s name is also changing to the SPDR Bloomberg Barclays Corporate Bond ETF and the fund will begin tracking the Bloomberg Barclays US Corporate Bond Index at the end of July.
Effective May 30, the SPDR Barclays Mortgage Backed Bond ETF (NYSEArca: MBG) will charge 0.06% per year, down from 0.20%. MBG, which is more than nine years old, holds investment-grade mortgage-backed securities (MBS).
Splits, Too
SSgA also said it is splitting five of its ETFs, resulting in lower share prices for the funds.