SYDNEY, 26 January 2023: – State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), marked the 30th anniversary of the first ever US-listed exchange traded fund (ETF) this month. Launched on January 22, 1993 on the New York Stock Exchange (NYSE), the SPDR S&P 500 ETF Trust was later listed on the Australia Securities Exchange (ASX) on October 13, 2014 represented by CHESS Depository Interests (CDI), providing investors with access to the world’s largest economy.
Recent findings from State Street Global Advisors ETF Impact Survey reaffirmed ETFs continue to be an effective vehicle that can help investor confidence. The survey was conducted in November and December 2022, studied over 1,000 investors globally, of which 300 of them were investors with investable assets of US$250,000 in Australia, Japan and Singapore. It was designed to understand investor attitudes and perceptions about ETFs, the market and the economy.
Overall, the perceived benefits ETFs have brought to investors has been overwhelmingly positive. The survey found that investors with an existing ETF holding report containing ETFs benefited from improved overall performance of their portfolio (73% globally and 88% in Japan, 78% in Singapore and 70% in Australia). Furthermore, the majority believe ETFs have made them a better investor (67% globally and 81% in Singapore, 67% in Australia and 64% in Japan).
“The ETF industry has democratized investing, giving investors large and small access to institutional-grade solutions that offer efficient, cost-effective exposures to all corners of the global investment market,” said Rory Tobin, Head of State Street Global Advisors’ Global SPDR ETF Business. “The ETF industry as a whole has demonstrated its resilience throughout major market events ranging from the burst of the late 1990s dot-com bubble, to the global financial crisis of 2008 and, more recently, the extreme pandemic-era volatility.”
The survey also reaffirmed the positive impact ETF ownership has on investors’ outlook about their own financial futures and the market.
Globally, about four-in-ten investors have ETFs in their investment portfolios, and those who do indicate they:
Regardless of whether or not they own ETFs in their portfolio, globally, more than half of investors agree ETFs:
“Apart from bringing our first US listed ETF to Australia, Japan and Singapore, State Street Global Advisors also created the first ETF in Australia and Singapore in 2001 and 2002 respectively, providing investors the flexibility to buy and sell an entire index of stocks quickly, easily and cost-efficiently,” said Meaghan Victor, Head of SPDR Distribution in Asia Pacific at State Street Global Advisors. “Our ETF Impact survey showed a large percentage of Japanese investors own ETFs and work with financial advisers, which make them more comfortable with highs and lows of the financial markets, and see more benefits of ETFs compared with investors in other parts of the world.”
Globally, Millennials have the most positive attitude about ETFs than any other generation surveyed:
How SPY Reinvented Investing: The Story of the First US ETF provides a historical look at how the launch of the first US-listed ETF opened the door to markets that were inaccessible to the majority of investors prior to 1993.
State Street Global Advisors’ Global Market Outlook provides perspective on where the markets could be headed and how investors can be positioning their portfolios.
For more resources on ETF basics visit our ETF education landing page.
Important Risk Disclosures
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/au.
SSGA, ASL 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 statement and target market determination, 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.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
SPDR®, Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC, ASX® is a registered trademark of the ASX Operations Pty Ltd, these trademarks have been licensed for use by S&P Dow Jones Indices LLC and sub-licensed for use to 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". SSGA, ASL is the AQUA Product Issuer for the CHESS Depositary Interests (or "CDIs") created over Interests in SPY which were first quoted on the AQUA market of the ASX on 13/10/2014
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Exp. Date: 01/31/2024