State Street has launched a new ETF with exposure to global fixed income, which it says will offer "one-stop-shop access to the global bond market".
The ETF will launch tomorrow (30 January) on the London Stock Exchange and hedged share classes will be available in the coming weeks.
The fund covers 94 per cent of the investible fixed income universe with exposure to more than 20,000 securities, more than 2,400 issuers and 24 currencies in more than 70 countries.
Rory Tobin, global co-head of SPDR ETFs for State Street, said that because the asset class was so complex, most funds in this area were predominantly the domain of large clients, and out of reach for smaller investors.
As the only physical Ucits ETF in the space without securities lending, Mr Tobin said this strategy has a potential value add for investors of all sizes.
However Patrick Connolly, head of communications at financial advisers Chase de Vere, said there was already plenty of choice for small investors.
He said: "While these launches are welcomed and, like this one, are mostly low cost options, the typical retail client already has more than enough choice for their adviser to construct a suitably diversified and balanced investment portfolio."