SPDR plans four sector-specific Barclays Corporate Bond ETFs

By Toni Weeks

San Luis Obispo, Calif., Nov. 18 - SPDR Series Trust announced in an N-1A filing with the Securities and Exchange Commission that it is planning to launch four new investment-grade corporate bond exchange-traded funds.

All four ETFs seek to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks one or more specific corporate sectors of the U.S. investment bond market. Each benchmark index is a subset of the Barclays U.S. Credit index, which consists of dollar-denominated, investment-grade, non-convertible, fixed-rate securities with at least one year to final maturity.

Under normal conditions, each fund will invest substantially all, but at least 80%, of its total assets in securities comprising its benchmark index.

Patrick Bresnehan and Kyle Kelly have been named portfolio managers of all four funds.

The SPDR Barclays Corporate Bond ETF will select its investments from the Barclays U.S. Corporate Bond index, which is designed to measure the performance of publicly issued U.S. corporate and specified foreign debentures and secured notes. The index will include securities from the industrial, utility and financial institutions sectors.

The second fund, the SPDR Barclays Corporate Industrial Bond ETF, will invest in securities of the Barclays U.S. Corporate Industrial Bond index, which is designed to measure the performance of the industrial sector of publicly issued U.S. corporate and specified foreign debentures and secured notes.

The SPDR Barclays Corporate Financial Bond ETF will choose its component securities from the Barclays U.S. Corporate Financial Bond index, which is designed to measure the performance of the financial sector of publicly issued U.S. corporate and specified foreign debentures and secured notes.

And finally, the SPDR Barclays Corporate Utilities Bond ETF will invest in securities of the Barclays U.S. Corporate Utilities Bond index, which is designed to measure the performance of the utilities sector of publicly issued U.S. corporate and specified foreign debentures and secured notes.

Ticker symbols, management fees and total annual fund operating expenses have not been determined.

Boston-based SSgA Funds Management, Inc. will be the investment adviser to the funds.

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