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SYDNEY, 17 February 2020 State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), today announced a 6 basis point reduction on its SPDR® S&P®/ASX 200 Fund (Ticker: STW) from 0.19 per cent to 0.13 per cent per annum, effective from 2 March 2020.
The change will result in a two-basis point reduction per annum in the underlying Exchange Traded Fund (ETF) weighted average cost of the State Street Risk-Based ETF Model Portfolios (Moderate, Balanced and Growth), launched to the Australian market in 2019.
STW is credited for the successful launch of the Exchange Traded Product (ETP) market in Australia. Since the 2001 entry of STW as the pioneering ETF in Australia, the market has grown to $65.70 bn1.
Today, STW is one of the largest ETFs in Australia. It offers investors growth and income potential by investing in 200 of Australia’s largest and most liquid companies in a single trade. As such, it continues to be a staple investment for institutions, financial advisers and retail investors alike.
Head of SPDR ETF Asia Pacific Distribution, Meaghan Victor, said 2020 marked a significant milestone for ETF investors.
“There are more options for investors than ever before. ETFs can offer liquidity and diversification through a single trade,” Ms Victor said.
“The fee reduction will result in a realignment in the total cost of ownership of STW, which we believe is one of the primary indicators ETF investors should look at, along with liquidity profile and the quality of the tracking index.
“With STW included as one component of our Risk-Based ETF Model Portfolios, we believe this change also means financial advisers can more cost effectively access State Street’s institutional asset management expertise, offering clients growth, while maintaining the same level of risk as traditional allocations.
“This fee change reflects our ongoing commitment to offer clients value without compromising on quality,” Ms Victor said.
STW key facts:
The SPDR S&P/ASX 200 Fund (STW) was listed on the ASX in 2001 and introduced ETFs to Australia.
The new management cost equates to $13 for every $10,000 invested in STW.
In 2015, the fee was reduced from 0.286% per annum down to 0.19% per annum.
STW was the most traded ETF in Australia in 2019.2
STW tracks the S&P/ASX 200 Index – recognised as one of the most systematically important financial benchmarks in Australia – and is a staple investment for many institutions, intermediaries and retail investors3.
1 Source: ASX Investment Products Monthly Update, as at 31 January 2020
2 Source: ASX and Chi-X, as at 31 December 2019.
3 Source: ASIC Corporations (Significant Financial Benchmarks) Instrument 2018/420 under subsection 908AC(2) of the Corporations Act 2001 (Austl.). Retrieved from https://www.legislation.gov.au)
Issued by State Street Global Advisors, Australia Services Limited (AFSL Number 274900, ABN 16 108 671 441) ("SSGA, ASL"). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia · Telephone: 612 9240-7600 · Web: www.ssga.com.
State Street Global Advisors, Australia Services Limited (ASL) (AFSL Number 274900, ABN 16 108 671 441) is the issuer of interests and the Responsible Entity for the ETFs which are Australian registered managed investment schemes quoted on the AQUA market of the ASX or listed on the ASX. This material is general information only and does not take into account your individual objectives, financial situation or needs and you should consider whether it is appropriate for you. You should seek professional advice and consider the product disclosure document, available at www.ssga.com/au, before deciding whether to acquire or continue to hold units in an ETF. This material should not be considered a solicitation to buy or sell a security. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. ETFs typically invest by sampling an index, holding a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index. Investing involves risk including the risk of loss of principal. Diversification does not ensure a profit or guarantee against loss. Holdings and sectors shown are as of the date indicated and are subject to change. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. Sector ETF products are also subject to sector risk and non-diversification risk, which generally results in greater price fluctuations than the overall market. SPDR and Standard & Poor's® S&P® indices are trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by State Street Corporation. The Dow Jones Global Select Real Estate Securities Index is a product of S&P Dow Jones Indices LLC and has been licensed for use by State Street Global Advisors, ASL. MSCI indices, the property of MSCI, Inc. ("MSCI"), and ASX®, a registered trademark of ASX Operations Pty Limited, have been licensed for use by State Street Global Advisors, ASL. SPDR products are not sponsored, endorsed, sold or promoted by any of these entities and none of these entities bear any liability with respect to the ETFs or make any representation, warranty or condition regarding the advisability of buying, selling or holding units in the ETFs issued by State Street Global Advisors, ASL. State Street Global Advisors Trust Company (ARBN 619 273 817) is the trustee of, and the issuer of interests in, the SPDR® S&P 500® ETF Trust, an ETF registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 and principally listed and traded on NYSE Arca, Inc. under the symbol "SPY". State Street Global Advisors, ASL is the AQUA Product Issuer for the CHESS Depositary Interests (or "CDIs") which have been created over units in SPY and are quoted on the AQUA market of the ASX. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors, ASL's express written consent.