SPDR Bloomberg SASB U.S. High Yield Bond ETF (SJHYN)

Overview

The SPDR Bloomberg SASB U.S. High Yield Bond ETF is an innovative financial instrument that seeks to replicate the performance of the Bloomberg SASB U.S. High Yield Corporate Index, minus fees and expenses. This exchange-traded fund (ETF) specifically targets bonds that are classified as high-yield, meaning they offer higher interest rates due to the increased credit risk of the issuing companies. These companies are predominantly based in the U.S. The ETF incorporates a diversified approach by including a variety of sectors, thus spreading the inherent risk associated with high-yield investments. Furthermore, it is aligned with sustainability principles by adhering to environmental, social, and governance (ESG) standards set by the Sustainability Accounting Standards Board (SASB). As such, it presents a compelling option for investors looking to combine the pursuit of higher yields with responsible investing practices. The ease of access to the high-yield bond market and the relatively lower cost compared to holding individual bonds make this ETF an attractive investment vehicle for a broad range of investors.

Products and Services

• High-Yield Corporate Bonds Exposure

This core offering from the SPDR Bloomberg SASB U.S. High Yield Bond ETF provides investors with access to a portfolio of below-investment-grade fixed income securities. These are high-yield bonds issued by U.S.-based companies across various sectors, designed for investors seeking higher income potential. Despite the higher risk associated with these bonds due to the issuers' increased credit risk, the ETF aims to mitigate this through a diversified investment approach, offering a balanced mix of sectors within the high-yield universe.

• Sustainability-Integrated Investing

By tracking the Bloomberg SASB U.S. High Yield Corporate Index, the ETF integrates ESG considerations into its investment strategy. This is particularly significant for investors who prioritize sustainability alongside financial return. The index focuses on bonds that perform well according to the sustainability metrics established by the SASB, ensuring that invested capital supports environmentally and socially responsible corporate practices. This approach aligns with the growing trend towards responsible investing, presenting an opportunity for investors to contribute positively to society while targeting financial gains.