SPDR UK Gilts 1 – 5 Years

ETF description

The SPDR UK Gilts 1 – 5 Years ETF provides investors with exposure to short‑term UK government bonds with maturities ranging from 1 to 5 years. By tracking the ICE UK Government Bond 1 – 5 Years index, this ETF includes a selection of UK gilts, offering a low‑risk investment in high‑quality government debt. The ETF is designed to provide a stable income stream with reduced interest rate sensitivity compared to longer‑duration bonds. It is suitable for investors seeking to preserve capital while earning predictable returns from short‑term UK government securities.

Issuer details

SPDR ETFs (Standard & Poor’s Depositary Receipts), managed by State Street Global Advisors, are among the largest and most recognized ETFs in the world, with over $1 trillion in assets under management as of June 2024. SPDR offers a broad range of ETFs covering various market segments, including equities, fixed income, sector‑specific funds, commodities, and ESG (Environmental, Social, Governance) investments. Launched in 1993 with the SPDR S&P 500 ETF (SPY), the first ever ETF, SPDR ETFs are known for their strong emphasis on liquidity, transparency, and robust research and analysis. Notable ETFs in their lineup include the SPDR S&P 500 ETF (SPY), SPDR Gold Shares (GLD), and SPDR Bloomberg Barclays High Yield Bond ETF (JNK), reflecting SPDR’s commitment to providing diverse and high‑quality investment options to meet the needs of various investors.

Index details

The UK Gilts 1 – 5 Years index provides targeted exposure to British government bonds, known as gilts, with maturities ranging from 1 to 5 years. This index includes high‑quality sovereign debt issued by the UK government, offering investors a stable income stream and low credit risk associated with UK government securities. By focusing on short‑ to intermediate‑term gilts, the index aims to minimize interest rate risk while providing predictable returns. Its emphasis on short‑duration UK government bonds makes it a valuable addition for portfolios seeking safety, liquidity, and reduced sensitivity to interest rate fluctuations within the British fixed income market.