State Street Global Advisors Expands Fixed Income Offering with Debut of SPDR® Blackstone High Income ETF

Rhea-AI Summary

State Street Global Advisors has launched the SPDR Blackstone High Income ETF (HYBL), designed for risk-adjusted total return and high current income by investing in high yield corporate bonds, senior loans, and CLOs. Blackstone sub-advises the fund, utilizing active management techniques aimed at outperforming a composite benchmark of 50% high yield bonds and 50% senior loans. The fund aims to tap into the rising demand for income-generating investments amidst increasing interest from investors.

Positive

• Launch of SPDR Blackstone High Income ETF (HYBL) aligns with rising investor demand for high yield corporate bonds and senior loans.
• Sub-advised by Blackstone, bringing significant expertise in credit investing.
• Utilizes active management to potentially outperform a composite benchmark with less volatility.

Negative

• Investing in high yield securities carries greater risk of loss and credit risk, which may deter conservative investors.
• Active management does not guarantee performance and could lead to losses.

New ETF Invests in High Yield Corporate Bonds, Senior Loans and CLOs, Seeking to Provide Risk-Adjusted Total Return and High Current Income

BOSTON--(BUSINESS WIRE)-- State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR^® Blackstone High Income ETF (HYBL). Sub-advised by Blackstone Credit (“Blackstone”), HYBL is actively managed and invests in US dollar-denominated high yield debt securities seeking to provide investors with risk-adjusted returns and high current income. Blackstone is also sub-adviser of the SPDR^® Blackstone Senior Loan ETF (SRLN).

“We’re excited to expand on our successful partnership with Blackstone to provide investors with a new approach to income investing,” said Sue Thompson, head of SPDR Americas Distribution at State Street Global Advisors. “As investors search for higher yields, demand for senior loans and high yield corporate bonds is on the rise. HYBL is designed to meet this demand while providing access to Blackstone’s deep expertise across these segments of the credit market.”

As sub-adviser of HYBL, Blackstone will actively manage a portfolio of high yield corporate bonds, senior loans, and debt tranches of US CLOs using a top-down asset allocation approach coupled with bottom-up security selection that seeks to outperform a composite benchmark comprising 50% high yield bonds and 50% senior loans with less volatility than the individual benchmark components over a full market cycle.

The top-down asset allocation approach evaluates macroeconomic, technical, fundamental, and relative value factors to determine the allocation among the asset classes. The bottom-up security selection process relies on fundamental credit research to determine security selection within each asset class, while utilizing a systematic process in high yield bonds to seek to capture credit risk premium by identifying and exploiting potential mispricing at the individual security level.

Dan McMullen, Head of North American Liquid Portfolio Management for Blackstone said, “We see a compelling opportunity to generate income in high yield corporate bonds, senior loans and CLO debt securities through our active management approach. HYBL will build on the proven track record we have established through SRLN with State Street and benefit from our deep expertise in credit investing.”

In April 2013, State Street Global Advisors and Blackstone launched the SPDR Blackstone Senior Loan ETF (SRLN), the first actively managed ETF to provide exposure to senior loans. With over $6.7 billion of inflows last year, SRLN was the fastest growing US-listed active ETF in all of 2021. Net assets under management in SRLN totaled over $8.9 billion as of December 31, 2021.¹

For more information on the SPDR Blackstone High Income ETF, visit www.ssga.com/etfs.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are sponsored by affiliates of State Street Global Advisors. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com/etfs

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $881 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis.² Further information is available at www.blackstone.com.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $4.14 trillion† under our care.

*Pensions & Investments Research Center, as of 12/31/20.

†This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

¹ Bloomberg Finance L.P. data as of December 31, 2021.
² Blackstone as of December 31, 2021.

Important Risk Disclosures

Investing involves risk of including the risk of loss of principal.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

The value of the debt securities may increase or decrease as a result of the following: market fluctuations, increases in interest rates, inability of issuers to repay principal and interest or illiquidity in the debt securities markets; the risk of low rates of return due to reinvestment of securities during periods of falling interest rates or repayment by issuers with higher coupon or interest rates; and/or the risk of low income due to falling interest rates. To the extent that interest rates rise, certain underlying obligations may be paid off substantially slower than originally anticipated and the value of those securities may fall sharply. This may result in a reduction in income from debt securities income.

Investments in Senior Loans are subject to credit risk and general investment risk. Credit risk refers to the possibility that the borrower of a Senior Loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a Senior Loan will result in a reduction in the value of the Senior Loan and consequently a reduction in the value of the Portfolio’s investments and a potential decrease in the net asset value (NAV) of the Portfolio. Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest rates. Narrowly focused investments typically exhibit higher volatility and are subject to greater geographic or asset class risk. The fund is subject to credit risk, which refers to the possibility that the debt issuers will not be able to make principal.

The fund is actively managed. The sub-adviser’s judgments about the attractiveness, relative value, or potential appreciation of a particular sector, security, commodity or investment strategy may prove to be incorrect, and may cause the fund to incur losses. There can be no assurance that the sub-adviser’s investment techniques and decisions will produce the desired results.

Investing in high yield fixed income securities, otherwise known as "junk bonds", is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities. These lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

The views expressed in this material are the views of SPDR through the period ended February 17, 2022 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

Intellectual Property Information: Standard & Poor’s^®, S&P^® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC, (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties makes any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

State Street Global Advisors Funds Distributors, LLC is the distributor for some registered products on behalf of the advisor. SSGA Funds Management has retained Blackstone Liquid Credit Strategies LLC as the sub-advisor. State Street Global Advisors Funds Distributors, LLC is not affiliated with Blackstone Liquid Credit Strategies LLC.

Before investing, consider the fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit www.ssga.com. Read it carefully.

Not FDIC Insured - No Bank Guarantee - May Lose Value

State Street Global Advisors Fund Distributors, LLC, member FINRA, SIPC

© 2022 State Street Corporation. All Rights Reserved.
State Street Global Advisors Funds Distributors, LLC, One Iron Street, Boston, MA 02210

4225557.1.1.AM.RTL Exp. Date: 02/28/2023

View source version on businesswire.com: https://www.businesswire.com/news/home/20220215005990/en/

Deborah Heindel

+1 617 662 9927

DHEINDEL@StateStreet.com

Source: State Street Corporation

FAQ

What is the SPDR Blackstone High Income ETF (HYBL)?

The SPDR Blackstone High Income ETF (HYBL) is a newly launched fund by State Street Global Advisors that invests in high yield corporate bonds, senior loans, and CLOs, aiming for risk-adjusted returns and high current income.

Who manages the SPDR Blackstone High Income ETF (HYBL)?

The SPDR Blackstone High Income ETF (HYBL) is sub-advised by Blackstone, leveraging their expertise in credit market investments.

What investment strategy does HYBL employ?

HYBL employs a top-down asset allocation approach combined with bottom-up security selection to achieve its investment objectives.

What risks are associated with investing in HYBL?

Investing in HYBL involves risks such as loss of principal, credit risk related to high yield securities, and the possibility of underperformance due to the active management approach.

When was the SPDR Blackstone Senior Loan ETF (SRLN) launched?

The SPDR Blackstone Senior Loan ETF (SRLN) was launched in April 2013 and has shown significant growth since its inception.