SPDR Portfolio Corporate Bond

SPBO tracks an index of investment-grade US corporate bonds weighted in tiers by market value and issuer fundamentals.

The SPDR Portfolio Corporate Bond ETF tracks the Bloomberg U.S. Corporate Bond Index, managing $1.83B at a 0.03% expense ratio, offering a 5.20% yield. Its portfolio includes thousands of investment-grade corporate bonds at various maturities but a short duration. While SPBO's bullish case is strong, investors should know some risks in order to navigate them with a better understanding and hopefully higher confidence.

SPBO: A Balanced Fixed-Income Approach

Institutions prefer intermediate duration bonds in the current high rate environment. The SPDR Portfolio Corporate Bond ETF seeks to mimic the Bloomberg U.S. Corporate Bond Index. The fund invests in a diversified portfolio of investment-grade corporate bonds with an average maturity of 7 years. It currently offers a yield of 5.34%.

SPBO: Intermediate Duration Corporate Bond Fund, 5.4% Yield

SPDR Portfolio Corporate Bond ETF offers access to high-quality investment-grade corporate bonds with a diverse and broad-based portfolio. SPBO's holdings primarily consist of investment-grade corporate bonds with low default rates, providing a relatively safer investment option. The ETF has a high yield and potential for long-term capital appreciation, making it an attractive choice for income investors.

SPBO: High Quality Corporate Bond Exposure In A Single Fund

PIMCO Investment Grade Corporate Bond ETF

Aptus Defined Risk ETF

Fidelity Corporate Bond ETF

Franklin Investment Grade Corporate ETF

Goldman Sachs Access Investment Grade Corporate Bond ETF

Inspire Corporate Bond Impact ETF

Principal Investment Grade Corporate Active ETF

iShares Interest Rate Hedged Long-Term Corporate Bond ETF

iShares Investment Grade Bond Factor ETF

iShares 5-10 Year Investment Grade Corporate Bond ETF

John Hancock Corporate Bond ETF

American Century Diversified Corporate Bond ETF

FlexShares Credit-Scored US Long Corporate Bond Index Fund

iShares iBoxx $ Investment Grade Corporate Bond ETF

iShares BBB Rated Corporate Bond ETF

iShares Interest Rate Hedged Corporate Bond ETF

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Mobeus Income & Growth 2 VCT PLC

Invesco Fundamental Investment Grade Corporate Bond ETF

iShares Aaa-A Rated Corporate Bond ETF

Schwab 5-10 Year Corporate Bond ETF

FlexShares Credit-Scored US Corporate Bond Index Fund

M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years, according to McKinsey. Credit investors are not traditionally supposed to be fans of M&A, and it's true we are wary of leveraging M&A, where debt is loaded onto balance sheets to buy competitors. We are seeing a comeback for M&A that we think is likely to continue through 2024.

The Credit Opportunity In M&A

SPBO offers an attractive yield of 6% and a high-quality investment grade portfolio. The fund has declined significantly in 2022 and is still exhibiting weakness in 2023, but income investors should see this as a buying opportunity. Market fears, such as an economic recession, may negatively impact investment grade corporate bonds, but investors should take advantage of the opportunity to accumulate more shares.

SPBO: Long-Term Income Investors Should Own This Fund

Invesco Aerospace & Defense ETF

Vanguard Financials ETF

Vanguard Total Corporate Bond ETF

ETFs are the instrument of choice for millions of investors in the U.S. Through a single trade and for a relatively low price, an investor gains broad exposure to a market, sector or niche. They don't have to go out and purchase dozens of individual securities for diversification.

What's the Right Price for an ETF?

SPDR Portfolio Aggregate Bond ETF

The 0.03% price makes SPAB and SPBO cheaper than competing funds.

State Street Drops Price On 2 Bond ETFs

VictoryShares US EQ Income Enhanced Volatility Wtd ETF

Quadratic Interest Rate Volatility and Inflation ETF

FlexShares Quality Dividend Defensive Index Fund

Invesco Variable Rate Preferred ETF

Amid very-low interest rate environment, investors may be interested in securities that have the potential to offer capital appreciation as well as benchmark-beating yields.

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News for SPDR Portfolio Corporate Bond ETF (SPBO)