The SPDR Barclays 0–5 Year Sterling Corporate Bond UCITS ETF has been listed on Deutsche Börse, Xetra today.
Short maturity ETFs can be used to over or underweight specific regions and currencies and build more bespoke exposures across the yield curve.
The short maturity corporate indices tracked by SPDR ETFs hold all bonds until maturity, which has the effect of lowering duration and portfolio turnover while maintaining diversification.
Higher coupons from corporate bonds helped offset some of the negative impact of rising gilt and treasury yields in 2013, according to Eleanor Hope-Bell, head of SPDR UK.
“The SPDR range offers our investors diversified, liquid access to the short end of the government, investment grade and high yield corporate yield curves in one simple trade and allows for flexible cost-efficient ways to adjust duration within a portfolio, by replacing or blending with standard all-maturity exposures,” she added.
There are now 55 SPDR ETFs available across Europe. The SPDR Barclays 0–5 Year Sterling Corporate Bond UCITS ETF follows the recent launch of four other short-maturity ETFs:
- The SPDR Barclays 0-3 Year US Corporate Bond UCITS ETF
- The SPDR Barclays 0-3 Year Euro Corporate Bond UCITS ETF
- The SPDR Barclays 1-3 Year US Treasury Bond UCITS ETF
- The SPDR 0-5 Year US Treasury Bond UCITS ETF
