SPDR SSGA Fixed Income Sector Rotation ETF (FISR)

Overview

The described fund operates as a "fund of funds," indicating that its primary investment strategy involves allocating its assets across various other exchange-traded funds (ETFs). This approach allows it to diversify its investment portfolio by tapping into the performance and strategies of multiple ETFs. The focus is largely on fixed income securities, with a commitment to invest at least 80% of its net assets (including any borrowings for investment purposes) either directly or indirectly through the ETFs it holds. The fund and the ETFs within its portfolio may employ derivative instruments to either gain exposure to certain securities or hedge against potential risks, providing an alternative to direct investments in those securities.

Products and Services

• Investment in Exchange-Traded Funds (ETFs)

  The core offering of this fund is the strategic investment in a diversified portfolio of other ETFs. This method enables investors to indirectly gain exposure to a broad array of fixed income securities, leveraging the expertise and strategies of various fund managers across the ETF spectrum. By pooling resources into various ETFs, the fund takes a diversified approach, targeting different sectors, geographies, and asset classes to potentially stabilize returns and minimize risk.

• Fixed Income Securities Investment

  A significant focus of the fund is on fixed income securities, securing at least 80% of its net assets (plus any borrowing for investment purposes) in this asset class, either directly or through its investment in ETFs. This emphasis on fixed income securities aims to provide investors with a steady income stream and, ideally, a lower level of investment risk compared to equities. Fixed income securities include, but are not limited to, bonds, debentures, and other debt instruments that pay a return in the form of fixed interest payments.

• Derivative Instruments Utilization

  In addition to direct investments, the fund and its underlying ETFs may engage in the use of derivative instruments. These financial derivatives could be utilized to either enhance the exposure to certain securities or implement hedging strategies to mitigate potential investment risks. Derivatives offer a versatile tool in portfolio management, allowing the fund to adapt to market changes, capitalize on investment opportunities, or protect against possible losses without having to invest directly in physical securities.