State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR Bloomberg SASB® Corporate Bond ESG Select ETF (RBND). The newest SPDR ETF was developed to meet the demand for core fixed income ESG aware exposure, providing access to US dollar-denominated Investment Grade corporate bonds.
One of the durable trends reshaping the investment management industry over the past decade has been that investors want more choice. However, when it comes to ESG investing, equity ETFs have dominated the market, while choices for ESG-minded fixed income investors have been limited.
“Investors’ increasing appetite for cost-effective ESG solutions is not exclusive to the equity allocations in their portfolios,” said Noel Archard, global head of SPDR product at State Street Global Advisors. “With the launch of RBND, SPDR’s first fixed income ESG ETF publicly offered in the US, investors will now be able to better align their core fixed income exposures with their investment goals.”
The SPDR Bloomberg SASB Corporate Bond ESG Select ETF seeks to track the Bloomberg SASB US Corporate ESG Ex-Controversies Select Index. The index was developed by Bloomberg in collaboration with the Sustainability Accounting Standards Board (SASB).*
The index measures the performance of investment grade corporate bonds issued by companies that demonstrate certain environmental, social and governance characteristics, while also exhibiting risk and return characteristics that are comparable to those of the Bloomberg Barclays US Corporate Index.
The index methodology excludes issuers from the Bloomberg Barclays US Corporate Index that are involved in, and/or which derive significant revenue from, operations related to extreme event controversies, controversial weapons, UN global compact violations, civilian firearms, thermal coal extraction, and tobacco.
“Overcoming the challenges created by the lack of standardization in ESG data requires access to quality data from multiple sources. RBND is designed to help investors cut through the noise and integrate material ESG factors at the core of their fixed income portfolios,” Archard continued.
A recognized leader in asset stewardship and corporate governance, State Street Global Advisors is committed to helping the world’s governments, institutions and financial advisors reach their ESG investing goals. State Street Global Advisors began managing its first ESG portfolio more than 35 years ago and today manage $350 billion of assets that use an ESG integration investment approach. As stewards of clients’ capital, State Street Global Advisors helps investors see that what is fair for people and sustainable for the planet can deliver long-term performance.
For more information on the SPDR ETF suite, visit www.ssga.com/etfs.
* SASB does not take any position as to whether an issuer should be included or excluded from the underlying index.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are sponsored by affiliates of State Street Global Advisors. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com/etfs.
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 active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third-largest asset manager with US $3.15 trillion* under our care.
*This figure is presented as of September 30, 2020 and includes approximately $80.51 billion USD of 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.
Important Risk Information
In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETF shares may be bought and sold on the exchange through any brokerage account, ETF shares are not individually redeemable from the Fund.
ESG considerations may cause a fund to make different investment decisions than funds that do not incorporate such considerations in their strategy or investment processes. This could cause the Fund's investment performance to be worse than funds that do not incorporate such considerations. ESG considerations also may affect a fund’s exposure to certain sectors and/or types of investments, and may adversely impact the Fund's performance depending on whether such sectors or investments are in or out of favor in the market.
Treasuries are the debt obligations of a national government. Also known as “government securities,” Treasuries are backed by the credit and taxing power of a country, and are thus regarded as having relatively little or no risk of default.
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 loss.
Non-diversified fund may invest in a relatively small number of issuers, a decline in the market value may affect its value more than if it invested in a larger number of issuers. While the Fund is expected to operate as a diversified fund, it may become non-diversified for periods of time solely as a result of changes in the composition of its benchmark index.
Passively managed funds hold a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
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.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC
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, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing.
Not FDIC Insured • No Bank Guarantee • May Lose Value
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