SSgA Files Plans For Another Junk Bond ETF
State Street's (NYSE: STT) State Street Global Advisors unit, the second-largest U.S. ETF issuer, has filed plans with the Securities and Exchange Commission to introduce the SPDR Barclays Capital Short Term High Yield Bond ETF.
If it comes to market, the new ETF would be SSgA's second ETF devoted to junk bonds. The SPDR Barclays Capital High Yield Bond ETF (NYSE: JNK), which has been around for more than four years, is one of the more popular bond ETFs on the market with over $8.8 billion in assets under management as of December 29.
The iShares iBoxx $ High Yield Corporate Bond Fund (NYSE: HYG) is another competitor in the high yield bond space with almost $10.6 billion in AUM as of December 29.
The SPDR Barclays Capital Short Term High Yield Bond ETF will track the performance of the Barclays Capital 0-5 Cash Pay Constrained High Yield Index, which includes only bonds from industrial, utility and financial companies, according to Index Universe.
The index is comprised of issues greater than $350 million in size. The filing did not include a ticker or expense ratio for the new ETF.
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