On 12 June 2026, State Street Investment Management listed a new share class of its UCITS vehicle dedicated to global convertible bonds on the London Stock Exchange.
Article created by the editorial staff of ETFWorld.co.uk
Yie-Hsin Hung, Chief Executive Officer State Street Investment Management
The fund is named the State Street SPDR FTSE Global Convertible Bond USD Hdg UCITS ETF (Acc) and its ISIN code is IE000W566ZX2. The Total Expense Ratio (TER) is set at 0.55%. The fund is domiciled in Ireland and is managed by State Street Global Advisors Europe Limited.
The fund’s stated objective is to track the performance of the global convertible bond market. To achieve this, the fund uses a physical replication method via stratified sampling. This approach allows it to maintain a risk and return profile aligned with the benchmark index by selecting a representative subset of the securities included in the index.
The benchmark is the FTSE Qualified Global Convertible Monthly Hedged (USD) Index. This index measures the performance of the US dollar-denominated, currency-hedged version of the main index, the FTSE Qualified Global Convertible Index. The main index is designed to provide a broad, investable measure of the global convertible bond market. The index includes issuers of various market capitalisations and from different geographical sectors, ensuring diversification that reflects the investable universe of the segment.
The listed share class incorporates monthly currency hedging against the US dollar. The index applies 100% hedging against the US dollar. The operational procedure involves the sale of forward contracts on all currencies comprising the main index. This hedging transaction is carried out at each monthly rebalancing. The amount of forward contracts sold is based on the anticipated currency exposure of each currency following the rebalancing of the underlying index. This mechanism eliminates the impact of exchange rate fluctuations on the performance of convertible bonds relative to the US dollar.
This new listing complements State Street’s existing offering in the convertible bond segment. The SPDR FTSE Global Convertible Bond UCITS ETF range includes several share classes with different distribution policies and currency hedging strategies. Unhedged versions are available, as well as monthly hedges against the euro, Swiss franc and British pound. The distribution version with US dollar hedging is already available on the market and is identified by the ISIN code IE00BDT6FR16. The introduction of the accumulation share class with US dollar hedging (IE000W566ZX2) is aimed at investors who require automatic reinvestment of income.
The listing on the London Stock Exchange on 12 June 2026 provides institutional investors and financial advisers with a vehicle for allocating capital to global convertible bonds. The TER of 0.55% and the UCITS structure make it suitable for regulated European portfolios. The monthly US dollar currency hedge offers a practical solution for investors wishing to maintain exposure to the underlying asset whilst eliminating the currency risk of local currencies against the dollar.
| ETF | State Street SPDR FTSE Global Convertible Bond USD Hdg UCITS ETF (Acc) |
| ISIN | IE000W566ZX2 |
| SEDOL | BT8T272 |
| Currency | USD |
| Management Fee | 0.55% |
| Dividends | Capitalisation |
| Benchmark | FTSE Qualified Global Convertible Monthly Hedged (USD) Index |
Source: ETFWorld.co.uk
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