State Street Global Advisors (SSGA) has launched a global aggregate bond ETF to combat the current low yield environment, the group has announced.
The SPDR Bloomberg Barclays Global Aggregate Bond Ucits ETF is available on Xetra, Deutsche Bank’s electronic trading platform.
The ETF offers exposure to one of the largest and most liquid indices in the global bond market, covering 94% of the fixed income universe.
Commenting on the new launch, Stephen Yeats, managing director and head of beta rate solutions for EMEA and Asia-Pacific at SSGA, said: 'The extremely low yields on the bond markets in Europe are forcing European investors to broaden their horizons in search of a better return momentum.
'An allocation to the Global Aggregate Index, with global exposure, provides investors with a single point of access to the global bond market.'
The fixed income range of SPDR Ucits has 33 products, combining a total of $10 billion assets and a market share of more than 10% of ETF flows in 2017.
This new ETF has been quoted on the London Stock Exchange and will be listed on the Italian exchange, Borsa Italiana, during the course of the year.
While it is not currently hedged against currency risk, units hedged against currency risk against the dollar, the euro, the pound and the Swiss franc will be made available over the coming weeks.