SPDR Nuveen Barclays New York Municipal Bond ETF

Risk Classification: 3 – Balanced

Price per Unit (1 Apr 16): 23.93 [USD]

Dividend Yield: 2.30%

Expense Ratio: 0.20%

Please refer prospectus for detailed risk disclosure

Investment Rationale:

This ETF broadly tracks the US intermediate-term government and agencies market. We don’t expect a sharp sell-off in medium term US treasuries due to our overall bearish outlook and high yield differential with other G3 sovereign markets. Though the US Fed may raise short term rates in 2016, longer term treasuries will remain anchored as long term inflation expectations remain under check. Safer investments like US Treasuries and Agencies will do well in this environment.

Below Chart shows US 5yr Treasury Generic Yields:

us 5y treasury

Fundamental Risk to investment:

This ETF will sharply sell off in the event of a sharp widening in credit spreads in agency credit and/or a sharp sell-off in US Treasuries. Neither are base case expectations.

Details of ETF:

Details on SPDR website – For Live data and Prospectus