State Street Global Advisors launched SPDR Barclays Capital Short Term Corporate Bond ETF (NYSEARCA:SCPB) on Thursday (12/17/2009). Numerous new bond ETFs came on the market this year, but this one is especially welcome because it is a ‘corporate’ bond fund.
The new SCPB ETF (fund overview) invests only in investment-grade (average credit quality: A2/A3), short-term corporate bonds that are typically less sensitive to interest rate movements than intermediate or long-term bonds. The fund will have a 0.12% expense ratio.
According to the fact sheet (pdf), the underlying index has 572 holdings, a 1.9 year adjusted duration, and a 2.69% yield. There is some confusion in the market regarding ‘corporate’ bond funds and ‘credit’ bond funds, with the terms sometimes used interchangeably. SSGA has put together a Corporate vs. Credit Special Report (pdf) to help clarify the differences.
Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.