State Street Global Advisors (SSGA), begun trading the SPDR Dorsey Wright Fixed Income Allocation ETF (Nasdaq: DWFI) on Thursday, June 02, 2016.
Here is a synopsis of the new ETF:
|Symbol: DWFI||Exchange: NASDAQ|
|Name: SPDR Dorsey Wright Fixed Income Allocation ETF||Net Expense Ratio: 0.60%|
The SPDR Dorsey Wright Fixed Income Allocation ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Dorsey Wright Fixed Income Allocation Index.
DWFI is a “fund of funds,” meaning that it invests its assets in other ETFs.
The Dorsey Wright Fixed Income Allocation Index is owned and developed by Dorsey, Wright & Associates (Index Provider) and is constructed pursuant to the Index Provider’s proprietary methodology. The selection universe for the Index includes U.S.-listed fixed income ETFs advised by SSGA FM or its affiliates (SPDR ETFs) that are designed to target exposure to fixed income securities, including U.S. and non-U.S. developed and emerging market bonds, treasury bonds, corporate bonds, high yield bonds, inflation-protected bonds, floating rate notes, first lien senior secured floating rate bank loans, U.S. nonconvertible preferred stock and other preferred securities, U.S. municipal bonds and U.S. convertible securities.
As of April 30, 2016, the Selection Universe consisted of:
SPDR Barclays 1-3 Month T-Bill ETF,
SPDR Barclays Aggregate Bond ETF,
SPDR Barclays Convertible Securities ETF,
SPDR Barclays Emerging Markets Local Bond ETF,
SPDR Barclays High Yield Bond ETF,
SPDR Barclays Intermediate Term Corporate Bond ETF,
SPDR Barclays Intermediate Term Treasury ETF,
SPDR Barclays International Corporate Bond ETF,
SPDR Barclays International Treasury Bond ETF,
SPDR Barclays Investment Grade Floating Rate ETF,
SPDR Barclays Long Term Corporate Bond ETF,
SPDR Barclays Long Term Treasury ETF,
SPDR Barclays Mortgage Backed Bond ETF,
SPDR Barclays Short Term Corporate Bond ETF,
SPDR Barclays Short Term International Treasury Bond ETF,
SPDR Barclays TIPS ETF,
SPDR Blackstone / GSO Senior Loan ETF,
SPDR Nuveen Barclays Municipal Bond ETF,
SPDR Nuveen Barclays Short Term Municipal Bond ETF,
SPDR Citi International Government Inflation-Protected Bond ETF, and
SPDR Wells Fargo Preferred Stock ETF,
although this may change from time to time.
The Index is designed to provide targeted exposure to the 4 SPDR ETFs that offer the greatest potential to outperform the other SPDR ETFs in the Selection Universe. The Methodology ranks each SPDR ETF in the Selection Universe by relative strength and selects the 4 top-ranked SPDR ETFs for inclusion in the Index. A SPDR ETF’s “relative strength” is the measurement of its price momentum as compared to the price momentum of all other SPDR ETFs in the Selection Universe, based on historical daily closing prices inclusive of dividends, since inception, of each SPDR ETF in the universe. A SPDR ETF’s relative strength can improve if its historical daily closing prices inclusive of dividends rise more than the other SPDR ETFs in the Selection Universe in an uptrend, or go down less than the other SPDR ETFs in the universe in a downtrend.
The Index is initially equal weighted, with each constituent SPDR ETF representing 25% of the Index’s weight. The Index is evaluated on a weekly basis. An Index component will only be removed if its relative strength ranking falls below an acceptable threshold based on the Index Provider’s ranking methodology. A SPDR ETF is only added to the Index when a current Index component is removed. When an Index component is removed, the SPDR ETF with the strongest relative strength not currently included in the Index takes its place within the Index. When there is a change to the components of the Index, the Index is rebalanced over a period of 3 business days so that each constituent SPDR ETF is equally weighted at 25% of the Index’s weight on the third, and final, business day of the Rebalancing Period. The Fund may engage in frequent trading of its portfolio securities in connection with Index rebalancings.
Index Holdings (06/01/16):
|SPDR Wells Fargo Preferred Stock ETF||25.19%|
|SPDR Nuveen Barclays Municipal Bond ETF||24.98%|
|SPDR Barclays Emerging Markets Local Bond ETF||24.77%|
|SPDR Barclays International Treasury Bond ETF||24.77%|
|SPDR Barclays Intermediate Term Corporate Bond ETF||8.33%|
Index Asset Allocation (06/01/16):
DWFI Home Page
Category: Bonds> Global Bonds> Global Diversified Bonds
Here is a comment from Nick Good, co-head, Global SPDR business at State Street Global Advisors:
“We think that bond markets are likely to exist in a low yielding and relatively uncertain environment for the foreseeable future, and we continue to look to provide unique solutions for investors to navigate these markets and seek to meet their return targets. With the launch of DWFI we are excited to have developed a relationship with Dorsey, Wright & Associates that allows SSGA to offer a convenient, cost effective, exchange traded vehicle tracking an index that is intended, through its relative strength methodology, to respond to changes in price of
certain fixed income ETFs, which may reflect volatility, rates and yield spreads.”