State Street Global Advisors (SSGA), the asset management business of State Street Corporation, has launched the SPDR Dorsey Wright Fixed Income Allocation ETF on the Nasdaq Stock Market, SSGA’s first SPDR ETF to be listed on this exchange.
DWFI, a fund of funds, allows investors an opportunity to take advantage of Dorsey, Wright & Associates’ (DWA) signal-driven, momentum-focused technical index methodology for fixed income exposure, implemented in a single SPDR ETF.
“We think that bond markets are likely to exist in a low yielding and relatively uncertain environment for the foreseeable future, and we continue to look to provide unique solutions for investors to navigate these markets and seek to meet their return targets,” says Nick Good, co-head, Global SPDR business at State Street Global Advisors. “With the launch of DWFI we are excited to have developed a relationship with Dorsey, Wright & Associates that allows SSGA to offer a convenient, cost effective, exchange traded vehicle tracking an index that is intended, through its relative strength methodology, to respond to changes in price of certain fixed income ETFs, which may reflect volatility, rates and yield spreads.”
The SPDR Dorsey Wright Fixed Income Allocation ETF seeks to track the performance of the Dorsey Wright Fixed Income Allocation Index. The Index is designed to provide targeted exposure to the SPDR fixed income ETFs that offer the greatest potential to outperform the other SPDR fixed income ETFs included in the Index selection universe. Dorsey, Wright & Associates’ proprietary Index methodology ranks each SPDR fixed income ETF by relative strength1 and selects the four top-ranked SPDR ETFs for an initial equal weighted inclusion.
