ETF Hearsay: SPDR to list ESG Corporate Bond ETF this week

SPDR® Bloomberg SASB® Corporate Bond ESG Select ETF
Preliminary prospectus filed September 17, 2019

UPDATE: Listed on November 11, 2020

Expense ratio: 0.12%
Ticker: RBND
Exchange: NYSE arca
Index: Bloomberg SASB® US Corporate ESG Ex-Controversies Select Index
Prospectus is here.

Uses the SSgA Responsibility Factor Score mapping as per SASB (Sustainability Accounting Standards Board)

Index Summary: (Index launched in September 2019 with history backfilled to 2014.)

Universe: Bloomberg Barclays US Corporate Index
Components weighted using optimization process controlling for active total risk
Excludes issuers that are tagged with Extreme Event Controversies, Controversial Weapons, UNGC Violations, Civilian Firearms, Thermal Coal Extraction, and Tobacco Companies.

Sector: Corporate (industrial, utility and financial institutions) issuers only

Currency: USD

Quality: Baa3/BBB-/BBB- or higher

Amount outstanding: USD300mn minimum

Maturity:

At least one year
Bonds that convert from fixed to floating rate will exit index one year prior to conversion. Fixed-rate perpetual bonds are not included.

Taxability:

Only fully taxable issues.
Dividend Received Deduction (DRD) and Qualified Dividend Income (QDI) eligible securities are excluded

Security Types Included

Security Types Excluded

Contingent capital securities, including traditional CoCos and contingent write-down securities with explicit capital ratio or solvency/balance sheet–based triggers
Bonds with equity type features (e.g., warrants, convertibles, preferreds, DRD/QDI-eligible issues)
Inflation-linked bonds, floating-rate issues
Fixed-rate perpetuals
Taxable and tax-exempt municipal securities
Private placements, retail bonds
USD25/USD50 par bonds
Structured notes, pass-through certificates
Illiquid securities with no available internal or third-party pricing source

ETF Hearsay