State Street Launches ETFs for Building Bond Ladders

State Street Global Advisors this week introduced what it called the first actively managed corporate and municipal target maturity bond exchange-traded funds in the U.S. market — its SPDR SSGA MyIncome ETFs lineup.

The suite of 14 actively managed target maturity ETFs, with maturity years ranging from 2026 to 2034, seeks to provide investors the ability to build custom bond ladder portfolios to manage their cash flow, interest rate risk and liquidity needs.

“Fixed income investors have been enjoying the highest interest rates seen in decades, but many are wondering how they can protect against the potential for precarious rate fluctuations ahead,” said Anna Paglia, State Street Global Advisors’ chief business officer.

During times of interest rate uncertainty, clients often ask how they should invest if interest rates go down and what changes they should make to their fixed income allocations, the firm noted.

These questions can especially interest retirees who aim to preserve capital while withdrawing assets, State Street said.