State Street launches fixed-income ETFs

State Street Global Advisors of Boston today announced the launch of two new fixed-income exchange traded funds: the SPDR Barclays Capital Short Term International Treasury Bond ETF (BWZ) and the SPDR Barclays Capital Mortgage Backed Bond ETF (MBG). “Recent market volatility has increased demand for fixed-income ETFs that provide efficient and cost-effective exposure to markets that help investors enhance the diversification of their fixed-income holdings,” James Ross, a senior managing director at SSgA, said in a statement. The SPDR Barclays Capital Short Term International Treasury Bond ETF is designed to track the price and yield performance of the Barclays Capital 1-3 Year Global Treasury ex-US Capped Index. The ETF has an expense ratio of 0.35%. The SPDR Barclays Capital Mortgage Backed Bond ETF is designed to track the price and yield of the Barclays Capital U.S. MBS Index. The ETF has an expense ratio of 0.2%.