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On Thursday, State Street Global Advisors (SST) will launch the SPDR Barclays Capital Short Term Corporate Bond ETF in hopes of taking advantage of the continued interest in fixed income exchange traded funds. The fund will trade under the ticker, SCPB.

SCPB will track the Barclays Capital 1-3 Year U.S. Corporate Investment Grade Index.

While this instrument will be the first corporate bond fund from SSgA, there are already a number of ETFs available that provide investors with exposure to corporate debt. The fund most similar to SCPB will likely be the Vanguard Short Term Corporate Bond ETF (NASDAQ:VCSH). Like SCPB, VCSH tracks a basket of short maturity debt representative of the Barclays Capital U.S. 1-5 Year Corporate Index.

In 2009 through November, bond ETFs saw the strongest inflows out of all asset classes as investors avoided risk and fled into security. As the global market conditions remain harsh and largely uncertain, bond ETFs will continue to attract investors wary of holding stock in even the most stable companies. Short term bonds, in particular, will be attractive as investors protect themselves against the inevitability of a Fed interest rate hike.

Disclosure: No positions

Source: State Street to Launch 1-3 Year Corporate Bond ETF Thursday