Wednesday, March 19, 2008
A New SPDR Zeroes in on International TIPs
News summary by MFWire's editors
Add TIPS and ETF and what do you get? Those letters spelled "State Street Global Advisors
" today as the Boston-based fund firm unveiled on the Amex a new ETF, the SPDR DB International Government Inflation-Protected Bond ETF
Company Press Release
BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT - News) and the largest institutional fund manager in the world¹, today announced that the SPDR® DB International Government Inflation-Protected Bond ETF (Ticker: WIP) will begin trading on the American Stock Exchange (Amex) on March 19, 2008.
The SPDR DB International Government Inflation-Protected Bond ETF seeks to track the DB Global Government ex-US Inflation-Linked Bond Capped Index, which includes 120 inflation-indexed bonds from 18 developed and emerging countries outside of the US. To be included in the Index, bonds must be capital-indexed and linked to an eligible inflation index; have at least one year remaining to maturity at the Index rebalancing date; have a fixed, step-up, or zero notional coupon; and settle on or before the Index rebalancing date. The Fund’s expense ratio is 0.50 percent.
“Demand for international inflation-linked bond exposure has increased significantly in recent years as investors look to improve the risk-return profile of their portfolios by hedging against inflation and US dollar exposure while improving diversification,” said James Ross, senior managing director at State Street. “As the first ETF to offer investors access to this unique asset class, the SPDR DB International Government Inflation-Protected Bond ETF is a compelling addition to our growing family of fixed income SPDR ETFs.”
Aram Flores, Managing Director and Head of Index Research for the Americas, commented, “The DB Global Government ex-US Inflation-Linked Bond Capped Index was developed to serve as a benchmark for inflation-linked bonds, a market that has experienced strong growth in recent years. We are pleased that State Street Global Advisors has selected this innovative index to launch a SPDR as the first international inflation-linked bond ETF.”
State Street manages more than $141 billion in ETF assets worldwide (as of February 29, 2007) and is one of the largest providers in the United States and globally.
About State Street Global Advisors
State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT - News), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $2 trillion in assets under management at December 31, 2007, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 27 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.
Neil Anderson, Managing Editor
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