State Street SPDR Portfolio Intermediate Term Corporate Bond ETF

SPIB

時価総額 $114億

Yesterday's cooler-than-expected PCE print finally gave the bond market a breather, pulling Treasury yields down from their brief 5.3% peak. For financial advisors, this recent whiplash brings fixed income duration conversations back to center stage — specifically, balancing the hunt for long-term yield with the safety of ultra-short cash alternatives.

The State Street SPDR Portfolio Int Term Corp Bd ETF (SPIB) faces heightened risks from the Iran War-induced oil crisis, pressuring both credit spreads and benchmark rates. SPIB's intermediate duration and concentration in single-A and BBB credits make it vulnerable to rising yields and persistent inflationary pressures from ongoing geopolitical disruptions. Even though some vessels are passing, considerable risks and also Iranian tolls significantly increase logistic costs putting a floor on oil in our opinion.

Another blockbuster year for bond ETFs is in the books. After two straight years of record net inflows, taxable fixed income ETF assets have nearly doubled since 2020 – crossing the $2 trillion mark.

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A compelling observation was made by Jeffrey Sherman, deputy chief investment officer at DoubleLine, on stage at the Astoria Advisors Macro Summit. He had just stated, “As a bond investor, I'm here to tell you that we're not special, but that we tend to be more risk-averse.

SPDR® Portfolio Intermediate Term Corporate Bond ETF offers efficient intermediate duration exposure with low expenses compared to Treasury ETFs. SPIB's 4.08-year duration makes it sensitive to Fed rate decisions and YTM changes, but current credit spreads are historically low, limiting upside. Ambiguous macro signals: headline labor market data might stabilize, but concerns remain about reinflation risks. Also, the real economic state of the laborers is in question.

Taking on credit risk but not interest rate risk has been relatively rewarding to ETF advisors and investors thus far in 2024. The iShares Broad USD High Yield Corporate Bond ETF (USHY) had a year-to-date total return of 3.6% as of July 8.

High-quality bonds may outperform stocks in the near future, with the potential for increased credit risk. SPDR® Portfolio Intermediate Term Corporate Bond ETF offers a low-fee option for income-minded investors to boost their fixed-income yield. The SPIB ETF provides broad diversification, strong yield, and low-cost exposure, but there is still some credit risk to consider.

Hello! For this week's ETF Wrap, I caught up with Michael Arone, State Street's chief investment strategist, at the Exchange ETF conference in Miami. He shared his take on bonds as ETF investors look for clues as to when the Federal Reserve may cut interest rates.