Municipal Bond ETF Offering Announced by State Street

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation, will launch a municipal bond exchange-traded fund (ETF).

The SPDR Lehman Municipal Bond ETF (Ticker: TFI) will begin trading on the American Stock Exchange on or about September 13, 2007. The fund’s annual expense ratio is 0.20%.

The fund seeks to correspond to the price and yield performance of the Lehman Brothers Municipal Managed Money Index, which provides exposure to over 22,000 issues in the most liquid segment of the municipal bond market. The average credit quality of the municipal securities within the Index is AA1/AAA, and none of the bonds are currently subject to the Alternative Minimum Tax (AMT).

The announcement comes the day after Barclays Global Investors announced the iShares S&P National Municipal Bond Fund ETF, which trades on the American Stock Exchange (see Barclays Launches Municipal Bond ETF).

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