(Source: Business Wire)
State Street Global Advisors (SSgA)*, the asset management business of
State Street Corporation (NYSE: STT), today announced that the SPDR®
Barclays Capital Short Term Treasury ETF (Symbol: SST) and the SPDR
Barclays Capital Investment Grade Floating Rate ETF (Symbol: FLRN) began
trading on the NYSE Arca on December 1, 2011. The addition of these two
exchange traded funds (ETFs) strengthens State Street's family of fixed
income ETFs, which now includes 26 SPDR ETFs that provide precise access
to a wide range of fixed income investments.
The SPDR Barclays Capital Short Term Treasury ETF is the first ETF
designed to track the performance of the Barclays Capital 1-5 Year U.S.
Treasury Index. The Index includes all publicly issued US Treasury
securities that have a remaining maturity of greater than or equal to
one year and less than five years, are rated investment grade, and have
$250 million or more of outstanding face value. As of November 18, 2011,
there were approximately 114 securities included in the Index with an
average maturity of 2.8 years. The SPDR Barclays Capital Short Term
Treasury ETF's expense ratio is 0.12 percent.
"With short-term interest rates near zero, the potential for a rising
interest rate environment is a concern for many investors in long-term
Treasury bonds," said James Ross, senior managing director and global
head of SPDR Exchange Traded Funds at State Street Global Advisors. "The
launch of the SPDR Barclays Capital Short Term Treasury ETF enhances our
short-term government bond SPDR ETF offering, which also includes the
SPDR Barclays Capital 1-3 Month T-Bill ETF."
The SPDR Barclays Capital Investment Grade Floating Rate ETF is designed
to track the performance of the Barclays Capital U.S. Dollar Floating
Rate Note < 5 Years Index. The Index includes US dollar-denominated,
investment grade floating rate notes that have a remaining maturity of
greater than or equal to one month and less than five years, and have
$300 million or more of outstanding face value. As of November 18, 2011,
there were approximately 320 securities in the Index with an average
maturity of 1.71 years. The SPDR Barclays Capital Investment Grade
Floating Rate ETF's expense ratio is 0.15 percent.
Floating rate notes, which are often referred to as "FRNs" or
"floaters," are debt issues with variable coupon payments that are based
on a reference rate, such as 3-month LIBOR with a fixed spread.