SPDR man touts new ETFs

The first exchange traded funds giving investors access to international bonds began trading today, State Street Global Advisors of Boston announced. "The SPDR Lehman International Treasury Bond ETF offers unmatched fixed-income diversification that spans a wide range of developed and emerging countries," James Ross, senior managing director at State Street Global Advisors, said in a statement. Designed to provide precise, low-cost access to international fixed-income, the SPDR Lehman International Treasury Bond ETF seeks to track the total return performance of the Lehman Brothers Global Treasury Ex-US Capped Index. The index tracks fixed-rate local currency sovereign debt of investment grade countries outside of the United States. As of Aug. 31, it provided exposure to 674 issues from 18 countries denominated in 11 currencies. "In addition to providing investors with an opportunity to react to interest rate movements overseas, the SPDR Lehman International Treasury Bond ETF also can be used as a U.S. dollar hedge." The ETF will have an annual expense ratio of 0.50%.