This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

State Street Launches Five Bond ETFs

State Street Global Advisors launched five bond exchange-traded funds on the American Stock Exchange on Wednesday.

Three of the new State Street SPDR ETFs track Treasury bond indices of various maturities, one tracks an inflation-protected securities index, and another tracks an investment-grade bond index.

SSGA, a unit of State Street (STT), was the first to market with a stock ETF 14 years ago when it launched the Standard & Poor's Depositary Receipt (SPY), also called the SPDR. But the company has been relatively slow out of the starting gate with bond ETFs; its first five offerings follow on the heels of two other providers: Barclay Global Investors, a unit of Barclays PLC (BCS ) and Vanguard.

Still, the fixed-income asset class is relatively untapped by ETFs, which are essentially index-oriented funds that trade on an exchange. With the five launched Wednesday, the total number available in the U.S. has more than quadrupled over the past five months to 25. At the end of 2006, there were only six bond ETFs, all of them BGI's iShares. Since then, BGI has almost tripled its offerings. Vanguard got into the game in April with four bond offerings.

"We've been working on a fixed-income product for years," says Gary MacDonald, State Street's director of marketing. "But the regulatory environment was hard." He says it can take a long time to get approval the Securities and Exchange Commission to sign off on a new ETF, though the process has been getting better.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IPE $57.29 -0.19%
BIL $45.70 0.01%
ITE $61.13 0.00%
TLO $75.30 -0.42%
FB $119.10 1.10%


Chart of I:DJI
DOW 17,690.91 +30.20 0.17%
S&P 500 2,047.37 -3.26 -0.16%
NASDAQ 4,703.1120 -13.9820 -0.30%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs