Introducing the SPDR® MarketAxess Investment Grade 400 Corporate Bond ETF (LQIG). Designed to provide liquid, transparent, and efficient access to the investment-grade corporate bond market.
Innovation for Fragmented Credit Markets
With $1.2 trillion in AUM,1 fixed income ETFs have emerged as effective tools for liquidity and price discovery. But investor demand remains for more liquid, transparent, and efficient exposure to the full curve of the US investment-grade credit market.
Now, investors can gain the US investment-grade bond market exposure they want while seeking enhanced liquidity. And more accurate real-time pricing visibility into the corporate bond market means potentially tighter bid-ask spreads and less volatile premium/discounts.
Combining the transparency and tradability of an ETF with tracking an index utilizing proprietary liquidity data, LQIG seeks to deliver access to US investment-grade bonds with higher-than-average liquidity relative to the broader US corporate bond market.
SPDR ETFs and MarketAxess: Partners in Innovation
SPDR ETFs partnered with MarketAxess to build a new kind of fixed income solution designed for liquidity and tradability.
Having launched the first US-listed ETF in 1993, SPDR ETFs is a liquidity leader.2 Our nearly 40 fixed income ETFs are backed by the skill of our global institutional fixed income portfolio management team.
As one of the world’s largest institutional electronic fixed income trading venues,3 MarketAxess offers unique insight into bond market liquidity and pricing:
Relative Liquidity Score (RLS)
The RLS quantifies bond liquidity relative to other securities, to quickly assess how liquid a bond is using a 1 to 10 scale.
CP+ is a proprietary pricing algorithm for two-way (bid/offer) bond prices that are updated every 15 to 60 seconds.
1 Morningstar, as of March 31, 2022. 2 The SPDR ETF suite represents 36.1% of the ETF industry’s annual trading volume ($36.0 trillion) – $510 billion more than Vanguard and BlackRock combined – making State Street SPDR ETFs the secondary market leader. Calculations per SPDR Americas Research, Bloomberg Finance, L.P., as of 12/31/2021. 3 MarketAxess, as of March 31, 2022.
Bid-Ask Spread, or Spread
The difference between the highest price a buyer is willing to pay for an asset and the lowest price the seller will accept to sell. Bid-ask spreads are a key measure of the liquidity of an asset or security.
If an ETF is trading below its net asset value, or NAV, the ETF is said to be trading at a discount. If the price of the ETF is trading above its NAV, the ETF is said to be trading at a premium.
Important Risk Information
For institutional / professional investors use only.
Investing involves risk of including the risk of loss of principal.
The value of the debt securities may increase or decrease as a result of the following: market fluctuations, increases in interest rates, inability of issuers to repay principal and interest or illiquidity in the debt securities markets; the risk of low rates of return due to reinvestment of securities during periods of falling interest rates or repayment by issuers with higher coupon or interest rates; and/or the risk of low income due to falling interest rates. To the extent that interest rates rise, certain underlying obligations may be paid off substantially slower than originally anticipated and the value of those securities may fall sharply. This may result in a reduction in income from debt securities income.
Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
There can be no assurance that a liquid market will be maintained for ETF shares.
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The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
The MarketAxess Index is the exclusive property of MarketAxess and has been licensed for use by State Street Global Advisors Trust Company. State Street Global Advisors Trust Company products are not sponsored, endorsed, sold or promoted by MarketAxess and MarketAxess does not bear any liability with respect to the ETF or make any representation, warranty or condition regarding the advisability of buying, selling, holding any ETF managed or sponsored by State Street Global Advisors Trust. The MarketAxess trademark is a registered trademark of MarketAxess Holdings Inc. used under license.
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Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., member FINRA, is the distributor for DIA, MDY and SPY, all unit investment trusts. ALPS Portfolio Solutions Distributor, Inc., member FINRA, is the distributor for Select Sector SPDRs. ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with State Street Global Advisors Funds Distributors, LLC.
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Not FDIC Insured * No Bank Guarantee * May Lose Value