SPDR Bloomberg Barclays Emerging Markets Local Bond ETF (SSYK)

Overview

The fund is a specialized investment vehicle that focuses on emerging market fixed income securities. It commits a significant portion of its assets, specifically at least 80%, towards securities and financial instruments that originate from or are guaranteed by corporations and governments in emerging markets. The investment philosophy embraces a broad definition of fixed income securities, including but not limited to corporate or government bonds, sovereign debt, and structured securities. This strategic approach is designed to leverage the growth potential and yield opportunities present within emerging markets, while also incorporating a degree of risk management through diversified holdings.

Products and Services

• Emerging Market Fixed Income Securities

  An array of fixed income investments focused on securities issued or guaranteed by entities in emerging markets. These include government and corporate bonds that aim to provide investors with yield and potential capital appreciation.

• Structured Securities

  Investments in structured financial instruments that are engineered to redistribute the risks and returns typically associated with fixed income investments. These might include secured debt obligations and other derivative-related structures.

• Foreign Currency Transactions

  Participation in foreign exchange markets as part of the fund's investment strategy. This can involve direct currency trades or derivative instruments designed to hedge against currency risk or to profit from currency movements.

• Certain Derivatives

  Usage of financial derivatives such as options, futures, and swaps. These tools may be employed for hedging against various risks or for speculative purposes to take advantage of market movements.

• Preferred Securities

  Investments in preferential shares or other securities that provide dividends or payments before common stockholders and have a higher claim on assets in the event of liquidation.

• Zero Coupon Bonds

  bonds that are sold at a discount to their face value and do not offer interest payments. Instead, investors are rewarded with the difference between the purchase price and the bond's face value at maturity.

• Credit-Linked Notes

  Debt instruments linked to the credit performance of a third party. Investors receive higher interest rates in exchange for assuming the risk of credit events associated with the reference entity.

• Pass Through Notes

  Securities that aggregate the cash flows from underlying assets, such as mortgages, to investors. These notes pass through the principal and interest payments collected from the underlying assets.

• Bank Loans

  Investments in loans that are generally syndicated by banks to other lenders. These loans often carry floating interest rates and are used by companies to finance large projects or to refinance existing debt.

• Perpetual Maturity Bonds

  Bonds without a fixed maturity date, offering interest payments indefinitely. These instruments are unique in that they may never return the principal but offer continuous interest payments as income.