Resources

 

 


Benefits and Uses of ETFs

  • Access the performance of global markets, and active investment strategies with different ETFs. 
  • Invest confidently with the creators of the first US ETF, State Street.
  • Achieve asset allocation with market-wide diversification benefits.
  • Benefit from ease of access, public market trading, and liquidity.
  • Explore many possible uses, such as:
    • long-term investment for compound returns, 
    • in core-satellite portfolio strategies, 
    • to add market (beta) exposures to your portfolio, 
    • easy regular investment plans, 
    • for asset allocation, and 
    • to diversify your return and risk sources.

 


Education

  • Invest in the performance of the market.
  • Offer market-wide diversification.
  • Precise asset allocation can be achieved with simple, targeted exposures through global and sector ETFs.
  • Easy to own and trade for liquidity.
  • You get what’s on the label for transparency.
  • You always know the market price for confidence costs stay low1 
  • Ability to buy and sell on the exchange, just like ordinary shares

SPDR ETFs offer access to numerous markets, with the benefit of physical asset-backing, ease of trading, and cost efficiency — managed by one of the world’s most trusted global asset managers, State Street Global Advisors.


Education

  • ETFs are ideal for implementing asset allocation across markets and sectors. 
  • ETFs can be used for strategic asset allocation, for tactical approaches to asset allocation, and to implement core-satellite strategies.
  • ETFs can be short-sold in risk management strategies, and can be deployed to maintain market exposures while making asset management transitions.

Investors use ETFs in a variety of ways: 

1 Based on holding costs over time. Assumes that investors do not incur additional costs to themselves from brokerage fees and trading costs which arise when they trade in and out of an ETF.
2 Ibbotson, R. G. (2010). The importance of asset allocation. Financial Analysts Journal, 66(2), 18-20,1.


Important Information

Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. Diversification does not ensure a profit or guarantee against loss.