SPDR Bloomberg Barclays UK Gilt

ETF description

This ETF gives investors exposure to a range of bonds issued by the UK government, also known as ‘gilts’. It aims to follow the performance of a broad index that reflects the UK government bond market.

By investing in government bonds, this ETF is focused on lending money to the government in exchange for interest payments. Because it holds many different bonds with varying time until maturity, it offers a way to participate in the bond market without directly buying individual bonds.

This ETF might appeal to an investor who is looking for a component in their portfolio that behaves differently from shares, since government bond prices can move differently than company stock prices. It could suit someone who is comfortable with fluctuations in bond markets and willing to accept the risks that come with bonds, such as the possibility of losing value if interest rates rise or inflation erodes returns.

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 Bloomberg UK Gilt Bond Index measures the performance of the UK Government bond (Gilt) market and includes public obligations of the United Kingdom. Using market capitalisation weighting and a standard rule‑based inclusion methodology, this index reflects the performance and characteristics of the Gilt market. Securities must be rated investment grade, as defined by the index methodology.