BOSTON--(BUSINESS WIRE)--
State Street Global Advisors (SSgA), the investment management arm of
State Street Corporation (NYSE: STT), today announced that the SPDR(R)S&P(R) VRDO Municipal Bond ETF (Symbol: VRD) began trading
on the NYSE Arca on September 24, 2009. Its annual expense ratio is 0.20
percent.
The SPDR S&P VRDO Municipal Bond ETF is designed to provide investors
with access to municipal variable rate demand obligations (VRDOs), an
asset class offering attractive yields and stable income that is exempt
from federal taxes and often state and local income taxes as well.
Specifically, it seeks to track the price and yield performance of the
S&P National AMT-Free Municipal VRDO Index. As of September 21, 2009,
the index, which includes VRDOs issued by U.S. states, local
governments, or agencies, provides exposure to more than 377 issues.
VRDOs, which are often issued with maturities of up to 30 or 40 years,
are considered short-term instruments because they have a 1-day or 7-day
put feature that coincides with the timing of the daily or weekly yield
reset.
"Developed in response to increasing demand for VRDOs, the SPDR S&P VRDO
Municipal Bond ETF provides investors with access to a hard to reach
corner of the municipal bond market where the required minimum
denomination for issue purchase is $100,000," said James Ross, senior
managing director at State Street Global Advisors. "In offering precise,
cost efficient exposure to VRDOs, the SPDR S&P VRDO Municipal Bond ETF
provides a wide range of investors with an opportunity to enhance the
diversification and tax efficiency of their portfolios."
According to Standard & Poor's research, the number of VRDO issues
brought to market increased 32 percent in 2008.
The SPDR S&P VRDO Municipal Bond ETF complements State Street's growing
family of municipal bond SPDRs. As of August 31, 2009, the firm managed
$1.4B in municipal bond ETF assets in the following funds:
-- SPDR Barclays Capital Municipal Bond ETF (TFI);
-- SPDR Barclays Capital Short Term Municipal Bond ETF (SHM);
-- SPDR Barclays Capital California Municipal Bond ETF (CXA); and
-- SPDR Barclays Capital New York Municipal Bond ETF (INY).
State Street Global Advisors is one of the largest ETF providers in the
United States and globally. U.S. assets under management for SPDR ETFs
totaled more than $160 billion as of August 31, 2009.
About State Street Global Advisors
State Street Global Advisors, the investment management arm of State
Street Corporation (NYSE: STT), delivers investment strategies and
integrated solutions to clients worldwide across every asset class,
investment approach and style. With $1.6 trillion in assets under
management at June 30, 2009, State Street Global Advisors has investment
centers in Boston, Hong Kong, London, Montreal, Paris, Singapore,
Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.
For more information, visit State Street Global Advisors at www.ssga.com.
The "SPDR(R)" trademark is used under license from the
McGraw-Hill Companies, Inc. No financial product offered by State Street
Corporation or its affiliates is sponsored, endorsed, sold or promoted
by McGraw-Hill. Standard & Poor S&P SPDR S&P 500 and Select Sector SPDRs
are trademarks of The McGraw-Hill Companies, Inc., and have been
licensed for use by State Street Bank and Trust Company.
ETFs trade like stocks, are subject to investment risk and will
fluctuate in market value.
Frequent trading of ETFs could significantly increase commissions and
other costs such that they may offset any savings from low fees or costs.
Passive management and the creation/redemption process can help minimize
capital gains distributions.
Neither diversification nor asset allocation ensure a profit or
guarantee against loss.
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. Investors may acquire ETFs and
tender them for redemption through the Fund in Creation Unit
Aggregations only. Please see the prospectus for more details.
Bond funds contain interest rate risk (as interest rate rise bond prices
usually fall). The municipal market can be affected by adverse tax,
legislative or political changes and the financial condition of the
issuers of municipal securities. There are additional risks for funds
that invest in mortgage-backed and asset-backed securities including the
risk of issuer default: credit risk and inflation risk. A portion of
income may be subject to some state and/or local taxes and for certain
investors, a portion may be subject to the federal alternative minimum
tax. The use of interest-rate and index swaps is a highly specialized
activity that involves investment techniques and risks different from
those associated with ordinary portfolio security transactions. These
transactions generally do not involve the delivery of securities or
other underlying assets or principal.
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.
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.
Corp- 0014
Source: State Street Corporation
Contact: for State Street Corporation
MEDIA CONTACTS:
State Street
Marie McGehee, 617-664-1898
or
River Communications
Troy Mayclim, 914-686-5599