State Street SPDR Portfolio High Yield Bond ETF

Frequently Asked Questions About SPHY

What does SPHY invest in?

SPDR Series Trust - SPDR Portfolio High Yield Bond ETF is an exchange traded fund launched by State Street Global Advisors, Inc. The fund is managed by SSGA Funds Management, Inc. It invests in the fixed income markets of the United States. The fund invests in U.S. dollar denominated below investment grade corporate debt securities rated by Moody's, Fitch, or S&P. It invests in securities with at least 18 months remaining to final maturity. It seeks to track the performance of the ICE BofA US High Yield Index, by using representative sampling technique. SPDR Series Trust - SPDR Portfolio High Yield Bond ETF was formed on June 18, 2012 and is domiciled in the United States.

What is the expense ratio of SPHY?

State Street SPDR Portfolio High Yield Bond ETF (SPHY) charges an expense ratio of 0.05%. This is the annual fee deducted from fund assets to cover management and operations.

What is SPHY's distribution yield?

SPHY's trailing-twelve-month yield is 7.40%, calculated from the sum of distributions over the past year divided by the current price.

How does SPHY's covered-call strategy work?

SPHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of SPHY?

Effective duration measures SPHY's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. SPHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of SPHY?

SPHY's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.