This article was originally published on ETFTrends.com.
State Street Corp.'s State Street Global Advisors (SSgA), the third-largest U.S. exchange traded fund issuer, said it is lowering the expense ratios on two of its ETFs.
Effective July 31, the SPDR Barclays Issuer Scored Corporate Bond ETF (CBND) will charge 0.06% per year, or $6 on a $10,000 investment, down from its current fee of 0.16%. CBND, which recently turned seven years old, follows the Bloomberg Barclays Issuer Scored Corporate Index.
The fund is a smart beta bond offering “that seeks to provide exposure to corporate issuers that have publicly traded equity using factors other than the market value of their outstanding debt,” according to SSgA.
CBND's name is also changing to the SPDR Bloomberg Barclays Corporate Bond ETF and the fund will begin tracking the Bloomberg Barclays US Corporate Bond Index at the end of July.
Effective May 30, the SPDR Barclays Mortgage Backed Bond ETF (MBG) will charge 0.06% per year, down from 0.20%. MBG, which is more than nine years old, holds investment-grade mortgage-backed securities (MBS).
SSgA also said it is splitting five of its ETFs, resulting in lower share prices for the funds.
“State Street Global Advisors also announced share splits on five equity SPDR ETFs. The splits lower the funds’ share prices and increase the number of shares outstanding. The aggregate market value of shares outstanding is not impacted,” according to a statement.
“The share split will apply to shareholders of record as of market close on June 8, 2018 and are payable after market close on June 12, 2018. The shares will trade at their post-split price effective June 13, 2018,” according to the statement.
For more information on Fixed-Income ETFs, visit our Fixed-Income category.
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