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
3322028.1.1.AM.RTL
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version on businesswire.com: https://www.businesswire.com/news/home/20201110005694/en/
Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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