Investing in Environmental Social Governance (ESG) ETFs
SPDR offers both equity and fixed income ESG investments in its ETF range, allowing investors access to broad benchmarks while excluding issuers that derive significant revenue from certain controversial practices, industries or product lines and (for fixed income products), using best-in-class/positive screening in an effort to maximise ESG Scores.
State Street Global Advisors’ Approach to ESG Investing
Our mission is to invest responsibly to enable economic prosperity and social progress. Our capabilities in ESG investing are core to helping us achieve this mission.
Fearless Girl ignited a global conversation about the power of women in leadership and inspired companies around the world to add women to their boards. This is one example of the Asset Stewardship we undertake to make a measurable difference around the globe.
State Street Global Advisors is a signatory of the United Nations Principles for Responsible Investing.
1 State Street Global Advisors, February 2022, based on Morningstar data as of 31 January 2022.
2 State Street Global Advisors. Estimated and unaudited ESG AUM as of 31 December 2021 for client mandates in the following categories: negative/exclusionary screening, norms-based screening, best-in-class investment selection, and sustainability-themed investing, as defined by United Nations Principles for Responsible Investing (UNPRI) as:
Negative/exclusionary screening: The exclusion from a fund or portfolio of certain sectors, companies or practices based on specific ESG criteria.
Norms-based Screening: Screening of investments against minimum standards of business practice based on international norms.
Positive/best-in-class screening: investment in sectors, companies or projects selected for positive ESG performance relative to industry peers.
Sustainability themed investing: Investment in themes or assets specifically related to sustainability (for example clean energy, green technology or sustainable agriculture).
For Professional Investor use only.
All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
International Government bonds and corporate bonds generally have more moderate short term price fluctuations than stocks, but provide lower potential long-term returns. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
Responsible-Factor (R-Factor™) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.
A Smart Beta strategy does not seek to replicate the performance of a specified cap-weighted index and as such may underperform such an index. The factors to which a Smart Beta strategy seeks to deliver exposure may themselves undergo cyclical performance. As such, a Smart Beta strategy may underperform the market or other Smart Beta strategies exposed to similar or other targeted factors. In fact, we believe that factor premia accrue over the long term (5-10 years), and investors must keep that long time horizon in mind when investing.
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Information related to Mexico
This information does not constitute and is not intended to constitute marketing or an offer of securities and accordingly should not be construed as such. The Funds referenced herein have not been, and will not be, registered under the Mexican Securities Market Law (Ley del Mercado de Valores) and may not be publicly offered or sold in the United Mexican States. Disclosure documentation related to any of the aforementioned Funds may not be distributed publicly in Mexico and shares of the Funds may not be traded in Mexico.
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