A news release said the new offering, designed to provide access to investment grade credit bonds, carries an annual expense ratio of 0.15%. The product seeks to track the price and yield performance of the Barclays Capital Intermediate Credit Index.
The index includes investment grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to one year and less than 10 years. As of December 31, the index included 2,512 issues with an average credit rating of A and dollar-weighted maturity of 5.2 years, the release said.
“Developed in response to increasing demand from investors seeking access to intermediate credit securities, a segment of the fixed-income market that has historically offered higher yields than U.S. Treasuries, the SPDR Barclays Capital Intermediate Term Credit Bond ETF is a key addition to our growing family of fixed income SPDR ETFs,” said James Ross, senior managing director at State Street Global Advisors, in the release.