State Street launches ETF to provide access to long-term investment-grade bonds

By Devika Patel

Knoxville, Tenn., March 11 - State Street Global Advisors announced that the SPDR Barclays Capital Long Term Credit Bond ETF began trading on the NYSE Arca under the trading symbol "LWC" on March 11.

Its annual expense ratio is 0.15%.

Designed to provide investors with diversified, low-cost access to long-term (10-plus years) investment-grade bonds, the ETF seeks to track the price and yield performance of the Barclays Capital U.S. Long Credit Index.

The index includes investment-grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to 10 years.

As of Dec. 31, the index included 965 issues with an average dollar-weighted maturity of 24.39 years.

"Demand for access to high quality, long term credit bonds is on the rise as investors search for alternatives to U.S. Treasuries that will improve the yield on their fixed income portfolios," senior managing director Anthony Rochte said in a press release. "The SPDR Barclays Capital Long Term Credit Bond ETF is the longest-maturity credit bond ETF available to investors and a key addition to our growing family of fixed income SPDRs, which have attracted more than $800 million in net inflows in just the first two months of 2009."

Boston's State Street is the investment management arm of State Street Corp.

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