State Street Global Advisors Launches Industry's First Actively Managed Corporate and Municipal Target Maturity ETFs
The SPDR® SSGA MyIncome Suite Provides Active Exposure to Corporate and Municipal Bonds With Defined Maturity Dates
- Fund lineup consists of nine corporate bond and five municipal bond ETFs
- Investors can now leverage the potential benefits of actively managed target maturity ETFs to build their own custom bond ladder portfolios
- Uses a risk-aware, top-down approach combined with bottom-up security selection that seeks to overweight the most attractive sectors and issuers
State Street Global Advisors, the asset management business of State Street Corporation (NYSE:STT) today announced the introduction of its SPDR® SSGA MyIncome ETFs – the first actively managed corporate and municipal target maturity bond ETFs in the U.S. market. This suite of 14 actively managed target maturity ETFs with different maturity years ranging from 2026 to 2034, seeks to provide investors with the ability to build their own custom bond ladder portfolios to manage their respective cash flow, interest rate risk, and liquidity needs.
"Fixed-income investors have been enjoying the highest interest rates seen in decades, but many are wondering how they can protect against the potential for precarious rate fluctuations ahead," said Anna Paglia, chief business officer for State Street Global Advisors.
A common question clients ask advisors during times of interest rate uncertainty is how should they invest if interest rates go down? What changes should they make to their fixed income allocations, and how long will they be able to take advantage of today's higher rates? This can be of particular interest to retirees who are in the withdrawal phase of retirement, but still seek preservation of capital.
"Building a bond ladder by investing in target maturity ETFs is potentially helpful for retirees seeking predictability as they plan for the next chapter of their retirement years, without having to manage a portfolio of individual bonds," Paglia added.
The SPDR SSGA MyIncome ETFs are designed to help investors to efficiently build custom bond ladder portfolios to manage interest rate risks, cash flows, and liquidity needs. The suite consists of corporate bond and municipal bond ETFs. The nine SPDR SSGA MyIncome Corporate Bond ETFs seek to maximize current income while seeking preservation of capital. The five SPDR SSGA MyIncome Municipal Bond ETFs seek to maximize current income that is exempt from regular federal income taxes while seeking preservation of capital.
Investors are looking for ways to balance income and stability in this rate environment, and building a bond ladder portfolio through investing in ETFs may be an efficient way to manage duration risk and cash flow to meet liquidity needs.
The investment strategies of the SPDR SSGA MyIncome ETFs are designed to allow the portfolio management team to effectively maximize yield while preserving capital through a robust investment process and prudent risk management. State Street Global Advisors' active approach seeks to enhance the income profile of a target maturity ETF portfolio, while also managing for liquidity, sector, issuer concentration, and broader macro risks.
The funds will be managed by State Street Global Advisors' dedicated Active Fixed Income Portfolio Management Team.
For more information visit our MyIncome landing page.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world's governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with US $4.37 trillion† under our care.
*Pensions & Investments Research Center, as of 12/31/23.
†This figure is presented as of June 30, 2024 and includes ETF AUM of $1,393.92 billion USD of which approximately $69.35 billion USD is in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.
Important Risk Information
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.
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.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Actively managed ETFs do not seek to replicate the performance of a specified index. The Fund is actively managed and may underperform its benchmarks. An investment in the fund is not appropriate for all investors and is not intended to be a complete investment program. Investing in the fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.
In the Fund's target maturity year, proceeds from bonds maturing prior to the Fund's liquidation date may be reinvested in cash and cash equivalents. The Funds are designed to terminate on or about December 15 in their final target year of maturity at which point the Funds will distribute remaining net assets to shareholders pursuant to a plan of liquidation. The Funds do not seek to distribute any predetermined amount at maturity.
The municipal market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. Interest rate increases can cause the price of a debt security to decrease. A portion of the dividends you receive may be subject to federal, state, or local income tax or may be subject to the federal alternative minimum tax.
Non-diversified fund may invest in a relatively small number of issuers. The value of shares of non-diversified funds may be more volatile than the values of shares of more diversified funds.
Intellectual Property Information: The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates ("S&P DJI") and have been licensed for use by State Street Global Advisors. S&P® , SPDR® , S&P 500® ,US 500 and the 500 are trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices."
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.
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit ssga.com. Read it carefully.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member FINRA, SIPC
© 2024 State Street Corporation. All Rights Reserved.
State Street Global Advisors Funds Distributors, LLC, One Iron Street, Boston, MA 02210
7047280.1.1.AM.RTL Exp. Date: 09/30/2025
View source version on businesswire.com: https://www.businesswire.com/news/home/20240923406509/en/