A sound investment process and strong management team underpin SPDR® Blmbg ST HY Bd ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's effective investment philosophy supports a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in corporate bonds and BB rated bonds compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

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SPDR® Blmbg ST HY Bd ETF earns a High Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The main driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Excellent risk-adjusted performance also strengthens the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. The parent firm's five-year risk-adjusted success ratio of 58% supports the rating. The measure indicates the percentage of a firm's funds that survived and surpassed their respective category's median Morningstar Risk-Adjusted Return for the period. Their commendable success ratio suggests that this firm does well for investors and that this fund may benefit from that.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg U.S. High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index.  The fund generally invests substantially all, but at least 80%, and of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the index. The index is designed to measure the performance of short-term publicly issued U.S. dollar-denominated high yield corporate bonds.  

 This strategy's 12-month yield is 7.3%, higher than its average peer's 6.4%. In addition, it has a 7.6% 30-day SEC yield (a measure similar to yield-to-maturity). Higher yields tend to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated B. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with a 2.1-year duration, is expected to gain 2.1% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

High

Process

State Street’s team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Michael Brunell, Bradley Sullivan, Kyle Kelly. Experience on the team is abundant, with 13 years of average portfolio management experience. Together, they manage a total of three strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate. This group has successfully retained management talent, with no departures in the past five years. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR Bloomberg Short Term High Yield Bond ETF

SJNK tracks a market-value-weighted index of short-term publicly issued US high yield corporate bonds, with a remaining maturity of less than five years.

Federal Reserve hikes have led to higher yields across the board. High-yield corporate bonds offer particularly enticing yields.

SJNK: Short-Term High-Yield Bond ETF, Strong 7.3% Yield, Good Performance

Consider junk bond funds with shorter duration and lower volatility, such as the SPDR® Bloomberg Short Term High Yield Bond ETF.

SJNK: Short Duration Junk Just In Case The Fed Isn't Done

Brookfield Real Assets Income Fund

The Brookfield Real Assets Income Fund cut its distribution in August and predictably got punished for it. Since it predominantly holds high yield assets, we compare it to a high yield bond ETF. We conclude with our outlook on the Brookfield Fund.

Brookfield Real Assets Vs SJNK: Birds Of A Feather

Invesco Senior Loan ETF

SPDR Bloomberg Investment Grade Floating Rate ETF

iShares 7-10 Year Treasury Bond ETF

iShares 3-7 Year Treasury Bond ETF

SPDR Bloomberg High Yield Bond ETF

iShares Short Treasury Bond ETF

iShares 1-3 Year Treasury Bond ETF

iShares 0-5 Year TIPS Bond ETF

iShares TIPS Bond ETF

iShares 10-20 Year Treasury Bond ETF

iShares 20+ Year Treasury Bond ETF

Vanguard Intermediate-Term Corporate Bond ETF

Vanguard Long-Term Corporate Bond ETF

Vanguard Short-Term Corporate Bond ETF

Fixed-income investors looking for interest rate cuts from the Federal Reserve are still waiting, but that hasn't stopped low-rated bonds from posting strong gains in 2023. Bond investors hoping for encouraging signals from the Federal Reserve that its policy of raising interest rates was ending received mixed news yesterday.

Bank Loans And Junk Bonds Are Having A Good Year

SPDR Bloomberg Short Term High Yield Bond ETF holds short-term corporate debt that is below investment grade. SJNK has an annualized distribution yield of 8.4%, offering a higher yield compared to risk-free government bonds and money markets but also comes with higher risk. Many investors might be turned off by the risk while those with higher risk appetite might appreciate the higher yield and see it worth the risk.

SJNK: 8.4% Yielder - Probably Only Suitable For Investors With Higher Risk Appetite

The SPDR Bloomberg Short Term High Yield Bond ETF is the unsung hero in short-term fixed-income exposure. High yield, low volatility, and a highly diversified portfolio. Minimize the impacts of future unexpected rate hikes by keeping the duration short.

SJNK: The 7%+ Yield That No One Is Talking About

iShares 0-5 Year High Yield Corporate Bond ETF

We last covered SJNK and SHYG in an era of return free risk. Things have changed as the Federal Reserve went from complete complacency to utter panic on inflation.

SJNK And SHYG: 8% Yields With Low Duration Risk

iShares iBoxx High Yield Corporate Bond ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Experts see a recession looming in 2023, boosting odds of defaults in junk bonds.

As Bets on High Yield ETFs Surge, Risk in Portfolios May Jump

SJNK is one of the largest short-term high-yield corporate bond index ETFs in the market. SJNK offers investors a strong, growing 5.8% yield, and outperforms when interest rates increase.

SJNK: Short-Term High-Yield Corporate Bond ETF, Growing 5.8% Yield, Low Interest Rate Risk

Angel Oak Financial Strategies Income Term Trust

Golub Capital BDC

Oaktree Specialty Lending

Cohen & Steers Tax-Adv Pref Secs and Inc Fund

The Fed made another 75bp hike and remains committed to reining in inflation as quickly as possible. This suggests a "higher for longer" monetary policy rate approach, which would keep the policy rate both high and elevated over the medium term.

Implications Of 'Higher For Longer' Rates For Income Portfolios

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares U.S. Treasury Bond ETF

Xtrackers USD High Yield Corporate Bond ETF

iShares Broad USD High Yield Corporate Bond ETF

To celebrate the 20th anniversary of the first bond ETFs, investors flocked to the asset class, pouring in $28 billion in July, double the amount that flowed into equity ETFs during a strong month for the U.S. stock market. Demand was widespread, with 46 products gathering at least $100 million last month.

High Yield Bond ETFs Return to Favor as Expected

Credit Suisse Asset Management Income Fund

Wells Fargo Income Opportunities Fund

iShares iBonds 2026 Term High Yield and Income ETF

Western Asset Diversified Income Fund

High-yield corporate bond yields have nearly doubled this year on the back of the rise in Treasury yields and a back-up in credit spreads. At current yields, we find corporate bonds attractive in an environment of low default rates, strong macro indicators and decent corporate fundamentals.

Why We Are Buying 7-10% Yielding Corporate Credit

The recent flattening of the yield curve can now allow investors to earn pretty much the same yield in bonds while taking much less duration exposure. We take a look at SJNK - a high-yield corporate bond with a very low duration exposure which earns a higher yield than its longer-duration JNK counterpart.

SJNK: Earn A Higher Yield And Take Less Rate Risk

SPDR S&P Bank ETF

KBE and SJNK ETFs traded at an outsized volume yesterday.

Bank and Short-Term Junk Bonds: 2 ETFs to Watch for Outsized Volume

Vanguard Total Bond Market ETF

With less than four weeks left to the trading year, TIPS are on track to capture the lead for US bond-market performance in 2021, based on a set of ETFs through Dec. 6's close. Short-term Treasury Inflation Protected Securities are currently in first place via iShares 0-5 Year TIPS Bond.

Inflation-Indexed Treasuries Lead U.S. Bond Market Returns In 2021

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

With the Federal Reserve apparently eyeing a 2022 interest rate increase, fixed income investors are once again contending with curveballs from the U.S. central bank. The lay of the bond land in 2021 is a vexing cocktail of low interest rates, depressed credit spreads, and the specter of a looming rate hike.

Reasons to Keep It Short With Junk Bond Exposure

The recent slide in the bond market has been granted a reprieve over the last two months. Holding long-term bonds has certainly been a painful trade this year.

Short Junk And TIPS Continue To Lead U.S. Bond Market In 2021

Barings Global Short Duration High Yield Fund

Blackrock Limited Duration Income Trust

Wells Fargo Multi-Sector Income Fund

Eaton Vance Short Duration Diversified Income Fund

Eaton Vance Limited Duration Income Fund

Franklin Limited Duration Income Trust

PCM Fund

Pimco High Income Fund

We take a look at the Limited Duration CEF sector which offers one way for income investors to shorten up on their interest rate sensitivity. Investors seeking a higher income level as well as tactical investors on the lookout for cheaper discount valuations should consider BGH.

Limited Duration CEF Sector Update

Speculative-grade junk bond ETFs are enjoying huge inflows as fixed income investors seek out riskier assets to generate significant yield. On Wednesday alone, the iShares iBoxx $ High Yield Corp Bond ETF (NYSEArca: HYG) attracted $1.3 billion in net inflows, marking its second-biggest single-day inflow ever, Bloomberg reports.

Junk Bond ETFs Enjoy a Sudden Jump in Investor Interest

We reviewed a high yield bond ETF late last year. Today, we bring to you another and provide a comparison.

SJNK: Looking At The Risk-Reward

Rates were at bottom-of-the-barrel lows during much of 2020, causing a voracious appetite for yield. This caused fixed income investors to pile into risky debt, and is now dropping yields further.

With Investors Piling Into Risky Debt, Yields Are Dropping Even Further

The Fed’s pouring of funds into the high yield debt market makes for a stimulating portfolio play for investors looking to dial up the risk. As such, they can look at some high yield exchange-traded fund (ETF) options to satiate their appetites for fixed income.

Fed Stimulus Makes High Yield Bonds a Stimulating Option

VanEck Short High Yield Muni ETF

Fixed income investors nowadays are searching high and low for yield, but of course, the higher, the better depending on the scenario. Rather than invest in individual high yield bonds themselves, there are options in exchange-traded funds (ETFs).

Fixed Income Investors Are Searching High and Low for Yield

GS ETF Trust Shs Access High Yield Corp Bond Fund

With global rates at historical lows, the appetite for yield is making fixed income investors rethink junk bonds and not only that—they’re taking action with inflows into high yield bond funds and they can’t get enough. “While bond funds are nothing new, junk bond exchange-traded funds, which aim to mirror the makeup and performance of [.

ETF Investors Can’t Get Enough of High Yield

VanEck Fallen Angel High Yield Bond ETF

With over $23 billion in total assets, iShares iBoxx $ High Yield Corporate Bond ETF (HYG) reigns supreme in terms of size, but as investors are searching for more in this low-yielding environment, here are five more exchange-traded funds to consider. With the Federal Reserve stepping in to shore up the corporate bond market, including [.

News for SPDR Bloomberg Short Term High Yield Bond ETF ETF (SJNK)