State Street Global Advisors is making several enhancements to two high yield bond ETFs with a combined USD8.8 billion in assets.
A 1:3 reverse share split will be implemented to reduce trading costs for the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), while the SPDR ICE BofAML Crossover Corporate Bond ETF (CJNK) will change its index strategy and name, and decrease its expense ratio by 25 basis points to provide investors with low cost, broad high yield exposure.
“With over USD400 billion in indexed fixed income assets and more than 100 fixed income professionals, we are a leader in fixed income investing. As such, we are continuously looking for opportunities to develop and refine solutions that better meet the needs of investors,” says Noel Archard, global head of SPDR product. “JNK’s increased share price will appeal to investors who favor its large trading volumes and optionality, and with CJNK’s lower expense ratio and new index strategy, we are able to offer diversified, low cost exposure to investors who view high yield as a strategic asset class in buy-and-hold portfolios.”