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State Street unveils liquid fixed income ETF

liquid fixed incomeState Street Global Advisors (SSGA) has launched a global bond ETF, saying the fund is a liquid solution for European investors facing low yields.

The SPDR Barclays Global Aggregate Ucits ETF covers 94% of the investible fixed income universe and is available unhedged on the Xetra exchange. It will also be launched on the London Stock Exchange on January 30 and on Borsa Italiana later this year and the firm is to make share classes hedged to US dollar, euro, sterling and the Swiss franc available. 

Stephen Yeats, a regional head of fixed income beta solutions for SSGA, said the “extremely low yields in European bond markets make it compelling for European investors to seek a broader universe of yield dynamics outside their local region”.

Rory Tobin, global co-head of SSGA’s SPDR business, added that the firm was seeing more investors use the global aggregate bond index in more tactical ways, including to complement more volatile strategies, to transition assets, or as a liquidity sleeve.

SSGA has $2.78 trillion (€2.2 trillion) in assets under management.

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