SSFIXED: SELL - SPLB - SPDR Portfolio Long Term Corporate Bond ETF; BUY - WIP - SPDR FTSE International Government Inflation-Protected Bond ETF
As of January 13, we will no longer be publishing the weekly State Street ETF report. Additionally, the SSTREET, SSTARGETSECTOR, and SSWORLD models will no longer be supported on the NDW Research Platform. We will, however, continue to run and support the State Street Fixed Income Model SSFIXED, which follows the same underlying methodology as the SPDR Dorsey Wright Fixed Income Allocation ETF DWFI.
Over the last few weeks, we reviewed the underlying methodologies for the three SSGA models that will no longer be supported so that users may continue to run them on their own going forward using the matrix tool and/or the Custom Modeler Tool. We first discussed the State Street Sector Rotation Model SSTREET, which can be accessed here, and we reviewed the State Street Targeted Sector Rotation Model SSTARGETSECTOR last week, which can be accessed here. Click here for last week's article covering the State Street Global Rotation Model SSWORLD methodology and rules.
Today we have one change to report in the State Street Fixed Income Model SSFIXED. As a refresher, the State Street Fixed Income Model utilizes a relative strength matrix, using total return data, to determine its holdings and will rebalance upon a change, so each position is equally weighted at 25%. The change this week was triggered due to the matrix rank for the SPDR Portfolio Long Term Corporate Bond ETF SPLB deteriorating sufficiently versus its peers in the model universe, warranting its removal from the portfolio. As a result, the SPDR FTSE International Government Inflation-Protected Bond ETF WIP was added as it was the highest-ranked ETF not already owned by the portfolio. Over the last year (1/12/2020 – 1/12/2021), the State Street Fixed Income Model SSFIXED.TR is up 16.05% on a total-return basis, outperforming its benchmark, the iShares US Core Bond ETF AGG.TR’s return of 5.81% (through 1/12/2021).
