Cost-effective tools for targeting the exposures you seek
SPDR ETFs offer investors cost-effective1, flexible, transparent tools for managing currency exposures across equity and fixed income allocations. Built through partnerships with investors and index providers and fueled by our institutional expertise, our currency-hedged share classes allow investors to target their exposures.
Why Hedge Currency Exposure?
For international investors, currency movements can be a major driver of returns across asset classes. This is especially true in a low-return environment where currency swings can overwhelm the returns of the underlying asset.
Hedging selected currency exposures allows investors to focus on the return drivers that they want to own and reduce the number of variables affecting portfolio performance.
Efficient ETF Hedging Tools
SPDR ETFs are designed to allow investors to efficiently navigate between hedged and unhedged exposures.
SPDR ETF hedging options are built as separate share classes of the underlying fund. This makes it simple and cost-effective to switch between hedged and unhedged positions.
Premiums for hedged share classes of SPDR ETFs range from 0 bps to
Tracking a currency-hedged benchmark provides investors full visibility into the methodology, fees and past performance of the hedging strategy.
Built in partnership
When regulations required UCITS funds to operate hedged share classes within a hedged ratio of 95%-105% to the underlying NAV, other ETF providers stopped tracking hedged benchmarks. But at SPDR, we worked with our index partners to create indices with transparent methodologies that would satisfy the new rules.
Backed by a currency leader
SPDR ETFs are backed by State Street’s more than 30 years of experience managing currency exposures for sophisticated institutional investors. We created one of the industry’s first dedicated currency management teams and continue to prioritise currency exposure as a major contributor to investment performance.
Solutions for Any Objective
SPDR ETFs offer currency-hedged share classes in equity and fixed income exposures for USD, EUR, GBP and MXN. Investors use these tools to achieve a wide spectrum of targeted objectives.
Accessing US ESG corporate bond exposure in EUR
While US corporate bonds may offer yield in a low rate environment, the USD fluctuations could impact returns. This EUR-hedged share class can protect against USD currency moves, and also offers a best-in-class/positive screening ESG approach.
Minimising exposure to USD volatility
For investors looking to reduce their exposure to volatility in the USD market, we provide multiple ETFs which deliver the desired underlying exposure without the unintended USD currency risk.
Accessing return drivers in emerging markets
Local currency premiums can be a major contributor to emerging market returns. By offering a share class that hedges only the base currency of the portfolio, we enable investors to accept the emerging market currency risk without also incurring USD risk.
Hedging convertible bond exposures
SPDR is the only provider that offers a currency-hedged product tracking global convertible bond exposure. This product, which includes securities denominated in 11 different currencies, showcases the expertise of our specialist managers and our skill at executing multi-currency hedges efficiently.
Whether you are looking to fully hedge all currency exposure or selectively target returns in specific currencies, SPDR ETFs provide flexible, cost-effective solutions for executing your views with precision.
1Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs
Currency Risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.
Currency Hedging involves taking offsetting positions intended to substantially offset currency losses on the hedged instrument. If the hedging position behaves differently than expected, the volatility of the strategy as a whole may increase and even exceed the volatility of the asset being hedged. There can be no assurance that the Fund’s hedging strategies will be effective.
SPDR ETF is the exchange traded funds ("ETF") platform of State Street Global Advisors and is comprised of funds that have been authorised by European regulatory authorities as open-ended UCITS investment companies. SPDR ETFs may not be available or suitable for you.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Changes in exchange rates may have an adverse effect on the value, price or income of an investment. Further, there is no guarantee an ETF will achieve its investment objective.
SHARES IN THE FUNDS OF THE SPDR® ETF SICAV, SSGA SPDR ETFS EUROPE I AND SSGA SPDR ETFS EUROPE II PLC MAY NOT BE AVAILABLE FOR OR SUITABLE FOR YOU. THE VIEWS EXPRESSED IN THIS SITE DO NOT CONSTITUTE INVESTMENT ADVICE. INDEPENDENT ADVICE SHOULD BE SOUGHT IN CASES OF DOUBT. NEITHER THE INFORMATION NOR ANY OPINION CONTAINED ON THIS SITE CONSTITUTES A SOLICITATION OR OFFER TO BUY OR SELL SHARES OF THE FUNDS OR ANY OTHER FINANCIAL INSTRUMENT.
Standard & Poor's®, S&P® and SPDR® are registered trademarks of Standard & Poor's Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation's financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
SPDR ETFs may be offered and sold only in those jurisdictions where authorised, in compliance with applicable regulations.
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.
You should obtain and read a prospectus and KIID relating to the SPDR ETFs prior to investing. Further information and the prospectus/KIID describing the characteristics, costs and risks of SPDR ETFs are available for residents of countries where SPDR ETFs are authorised for sale on the SPDRs website and from your local SSGA office.