Harnessing the performance and diversification potential of factor investing requires using exposures that have been thoughtfully constructed and funds that are implemented with precision. State Street’s SPDR® smart beta ETFs are built in partnership with the world’s leading index providers and fueled by expertise that comes from more than 25 years of smart beta experience.
Smart Beta and ETF Expertise
Smart beta ETFs are a natural extension of our skill and experience as a premier manager of indexed strategies. We are the creator of the world’s first ETFs1 and introduced one of the earliest smart beta institutional strategies in 1993. Since then we have uncovered research-backed insights and formed strong opinions about how to efficiently harvest factor premia and implement them in a portfolio using ETFs.
of smart beta and ETF experience
in equity smart beta assets for institutional clients
smart beta portfolio managers and researchers
As of June 30, 2020
Explore Smart Beta ETF Investing
Investors are using smart beta ETFs to seek alpha, improve diversification, search for yield, mitigate volatility and lower costs.
Our SPDR smart beta ETFs are developed, refined and maintained through strong partnerships with the world’s leading index providers. We work closely with them to help ensure that the indices we use to define our smart beta ETFs capture factor premia in the most efficient way possible.
Our partnerships with index providers don’t end once a fund has been launched. We continually examine the exposures to help ensure that our ETFs deliver the expected factor premia amid evolving market conditions. We provide research-driven insights about ways to improve trading, liquidity and turnover.
Our Investment Beliefs
These core beliefs guide our approach to constructing smart beta ETFs:
Factor premia exist and can be captured
This creates opportunities to outperform using transparent, rules-based investment processes to harvest these premia.
Factor cyclicality must be accounted for
Core factor investing should account for cyclicality of factor performance; multi-factor approaches may provide diversification benefits and offer the potential for improved long-term consistency.
Portfolio design should meet investor objectives
An outcome-orientated implementation approach is crucial because performance can vary across factors over long periods.
For investors seeking to access dividend stability and growth as a potential driver of outperformance, our suite of Dividend Aristocrats strategies offers a range of regional exposures.
1 ETFs managed by State Street Global Advisors have the oldest inception dates within the US, Hong Kong, Australia, and Singapore. State Street Global Advisors launched the first ETF in the US on January 22, 1993; launched the first ETF in Hong Kong on November 11, 1999; launched the first ETF in Australia on August 24, 2001; and launched the first ETF in Singapore on April 11, 2002.
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.
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third party
Diversification does not ensure a profit or guarantee against loss.
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.