State Street Global Advisors on Thursday announced the launch of the SPDR Blackstone High Income ETF, an actively managed exchange-traded fund subadvised by Blackstone Credit that invests in U.S. dollar-denominated high-yield debt.
The new ETF, which invests in high-yield corporate bonds, senior loans and collateralized loan obligations, will seek to provide investors with risk-adjusted returns and high current income, a spokesman for SSGA said.
Blackstone Credit also subadvises the $9.9 billion SPDR Blackstone Senior Loan ETF, a fund launched in 2013 by SSGA and Blackstone that was the first actively managed ETF to offer exposure to senior loans, the spokesman said. With more than $6.7 billion of inflows last year, the senior loan ETF was the fastest-growing U.S.-listed active ETF in all of 2021, the spokesman said.
Thursday’s launch is “the latest in a long line of ETF joints between SSGA and specialist subadvisers and partners,” said Ben Johnson, director of global exchange-traded fund research for Morningstar, in an email.
As a duo, SSGA and Blackstone have a “solid track record” when it comes to asset gathering as illustrated by the nearly $10 billion in assets that investors have allocated to the Blackstone Senior Loan ETF, Mr. Johnson said.
The high income fund’s debut is timely given that investors are seeking higher yields and are worried about rising interest rates, he said.
SSGA has had success in gathering assets with actively managed fixed-income ETFs such as the Blackstone Senior Loan ETF as well as the $2.7 billion SPDR DoubleLine Total Return Tactical ETF “as they have demonstrated strong performance in the past,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA.
“We think this new fund offers a unique approach to tapping higher income across multiple bond sectors,” Mr. Rosenbluth said.
“We’re excited to expand on our successful partnership with Blackstone to provide investors with a new approach to income investing,” said Susan Thompson, an executive vice president and head of SPDR Americas distribution at SSGA, in a news release.
As investors look for higher yields, demand for senior loans and high-yield corporate bonds is increasing, Ms. Thompson said.
Daniel McMullen, senior managing director and head of North American liquid portfolio management for Blackstone Credit, added in the news release, “We see a compelling opportunity to generate income in high-yield corporate bonds, senior loans and CLO debt securities through our active management approach,” Mr. McMullen said.
SSGA has about $4 trillion in assets and Blackstone had $881 billion of assets under management as of Dec. 31, the release said.