Enhancements to two SPDR Fixed Income ETFs designed to meet evolving
needs of today’s investors
BOSTON–(BUSINESS WIRE)–State Street Global Advisors, the asset management business of State
Street Corporation (NYSE: STT), today announced several enhancements to
two high yield bond ETFs with a combined $8.8 billion in assets. A 1:3
reverse share split will be implemented to reduce trading costs for the
SPDR Bloomberg Barclays High Yield Bond ETF (JNK). In addition, the SPDR
ICE BofAML Crossover Corporate Bond ETF (CJNK) will change its index
strategy and name, and decrease its expense ratio by 25 basis points to
provide investors with low cost, broad high yield exposure.
“With over $400 billion in indexed fixed income assets and more than 100
fixed income professionals, we are a leader in fixed income investing.
As such, we are continuously looking for opportunities to develop and
refine solutions that better meet the needs of investors,” said Noel
Archard, global head of SPDR product. “JNK’s increased share price will
appeal to investors who favor its large trading volumes and optionality,
and with CJNK’s lower expense ratio and new index strategy, we are able
to offer diversified, low cost exposure to investors who view high yield
as a strategic asset class in buy-and-hold portfolios.”
Reverse Share Split to Reduce Trading Costs
The 1:3 reverse share split for the SPDR Bloomberg Barclays High Yield
Bond ETF raises its share price to approximately $105, helping to reduce
trading costs for clients seeking liquid exposure to high yield bonds.
The shares will trade at their post-reverse split price effective April
As a result of the planned action, shareholders of JNK have the
potential to hold fractional shares; the treatment of those shares will
be dependent upon custodial relationships, with some shareholders
receiving cash in lieu of fractional shares.
Lower Expense Ratio and New Index Strategy
Effective on April 1, 2019, the SPDR ICE BofAML Crossover Corporate Bond
ETF will change its underlying index, fund name and net expense ratio as
State Street Global Advisors’ SPDR ETF offering now includes 140
US-listed SPDR ETFs representing over $601 billion in assets.2
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international
and domestic asset classes. SPDR ETFs are managed by SSGA Funds
Management, Inc., a registered investment adviser and wholly owned
subsidiary of State Street Corporation. The funds provide investors with
the flexibility to select investments that are precisely aligned to
their investment strategy. Recognized as an industry pioneer, State
Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker
SPY) and has remained on the forefront of responsible innovation, as
evidenced by the introduction of many ground-breaking products,
including first-to-market launches with gold, international real estate,
international fixed income, and sector ETFs. For more information, visit www.spdrs.com.
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
nearly US $2.51 trillion* under our care.
* This figure is presented as of December 31, 2018 and includes
approximately $32.44 billion 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.
Investing involves risk including the risk of loss of principal.
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 Markets, LLC, member FINRA,
SIPC, a 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. ALPS Distributors, Inc., a registered broker-dealer, is
distributor for SPDR® S&P® 500, SPDR® S&P® MidCap 400 and SPDR Dow Jones
Industrial Average, and all unit investment trusts. ALPS Portfolio
Solutions Distributor, Inc. is distributor for Select Sector SPDRs. ALPS
Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are
not affiliated with State Street Global Markets, LLC.
Before investing, consider the funds’ investment objectives, risks,
charges and expenses. To obtain a prospectus which contains this and
other information, call 1-866-787-2257 or visit www.spdrs.com.
Read it carefully.
Not FDIC Insured • No Bank Guarantee • May Lose Value
Expiration date: 03/01/2020
1 As of 2/27/2019
2 Source: Bloomberg Finance
L.P., as of 01/31/2019
State Street Corporation