Efficiently accessing the targeted levels of income generation, capital preservation and risk exposure offered by fixed income can be challenging for investors of all sizes. This is especially true in less liquid sectors and regions. State Street’s SPDR® fixed income ETFs provide a cost-effective, liquid and transparent way to build your fixed income portfolio.
Intelligent fixed income indexing is in our DNA. Our fixed income ETFs are built and powered by the same expertise and resources that have made us one of the world’s leading fixed income institutional managers and a pioneer in ETF investing.
Across regions and sectors, we bring a unique combination of market knowledge, product expertise and scale to our SPDR ETF fixed income range. As the creator of the first US-listed ETF, we have more than 26 years of experience helping investors build strong, flexible portfolios.
in fixed income assets 1
dedicated fixed income professionals
of fixed income indexing experience
Explore our market insights into how investors can use ETFs to efficiently construct fixed income portfolios and capitalize on current opportunities.
SPDR Bond Compass Q3 2022
While the policy cycle appears to be turning, we could see near-term volatility. Amid a reshaped bond landscape, with higher yields and flatter curves, investors have ways to address market challenges.
We have developed a broad suite of fixed income ETFs to help investors build custom portfolios to pursue their goals. This breadth empowers us to provide innovative solutions powered by objective thinking.
Our fund family covers everything from government bonds to corporates, emerging market debt, high yield, and convertibles – and everything in between.
Across indexed and active strategies, ETFs have expense ratios that are significantly lower than mutual funds.2 These savings can have a meaningful impact on performance, especially in a low-yield environment.
ETFs' robust secondary market trading allows investors to tap into market liquidity more easily and reallocate more quickly than they can with single-CUSIP bond holdings.
Index-based and actively managed ETFs report holdings daily, increasing transparency for investors performing daily portfolio due diligence and attribution for risk management.
ETFs precisely cover the entire term structure along the yield curve, so investors can fine tune a portfolio’s interest rate risk (duration) to match market views or client liabilities.
Modulate Credit Risk
Ranging from investment-grade credit to crossover debt to senior loans to high yield, ETFs allow investors to control the amount of credit risk in a portfolio with ease and transparency.
Investors implement fixed income ETFs for a broad array of objectives, including:
1 Source: State Street Global Advisors, as of 31 December 2022.
2Morningstar, as of 31 December 2022. Oldest share class of US listed Fixed Income ETFs and Mutual Funds.
Investing involves risk including the risk of loss of principal.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.