Press Release


Fee reduction for Australia’s first ETF - STW


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.