You Asked, We Answered: More Low-Cost S&P® Exposures
Our low-cost suite now offers greater access to the core benchmarks you prefer. SPDR® is the only ETF provider to offer low-cost exposure to the S&P 500®, S&P MidCap 400®, S&P SmallCap 600®, and S&P Composite 1500®—as well as S&P 500® Growth, Value and Dividend styles. These funds are among the lowest cost in the industry—including an S&P 500 offering at only 3 basis points (bps).1
A strong flexible portfolio begins with the core. It provides a stable foundation to pursue specific investment goals—from managing risk and generating income to growing capital through diversification.
But core investing shouldn’t be costly. Instead, investors should have confidence that they aren’t overpaying for returns in the largest part of their portfolio.
The best core holdings offer:
Diversification ETFs usually track an index, so investors can get a basket of holdings in one simple trade
Low cost ETFs generally have lower fees than mutual funds, making them ideal for a core portfolio
Liquidity ETFs trade daily on exchange, and have multiple layers of liquidity through the unique creation/redemption mechanism, enabling investors to get in and out of their investment whenever the market is open
Transparency Investors can see exactly what is included in an ETF on a daily basis
Tax efficiency Investors typically are taxed only upon selling an ETF investment, whereas mutual funds incur such burdens over the course of the investment
These attributes may make ETFs an ideal core holding.
Asset allocation—the mix of stocks, bonds and cash in a portfolio—explains 90% of the variance in portfolio returns.2 Changing the weighting of these investments alters the risk profile of a portfolio, and therefore the potential return.
Allocate with Ease for Any Risk Appetite
With as few as three low-cost SPDR Portfolio ETFs, investors can easily build a diversified core portfolio of stocks and bonds. From conservative to aggressive allocations, the following five risk-based examples can be tailored to meet different investment objectives—each with a weighted-average cost just under 4 basis points (bps).
It's simple: high costs erode returns. So the largest part of your portfolio should never be the most expensive. Every little basis point counts.
SPDR Portfolio ETFs are diversified and tax-efficient stock and bond index funds, available from as little as 3 bps. Covering US equity, international equity and fixed income asset classes, they are designed to help investors allocate for the long-term. They have a median cost 93% lower than the median US-listed mutual fund.3
1State Street Global Advisors per Morningstar, as of 01/24/2020. Lowest cost in the industry is per Morningstar, as of 01/16/2020. Based on US-listed ETFs in the Small Blend, Mid-Cap Blend and Large Cap Blend Morningstar categories, respectively.
2Gary P. Brinson, L. Randolph Hood, Gilbert L. Beebower, "Determinants of Portfolio Performance", Financial Analyst Journal Vol.42 Issue 4 1986.
3Morningstar, State Street Global Advisors, as of 12/31/2019. The median expense ratio of the 22 SPDR Portfolio ETFs compared to the median expense ratio of all US-listed mutual funds which include both active and passive products. The average expense ratio of all passive US-listed mutual funds is 0.25%. SPDR Portfolio ETFs are 76% lower than the average passive US-listed mutual fund.
State Street Global Advisors Funds Distributors, LLC does not offer securities trading. SPDR ETFs may not be available for trading on a commission free basis on the brokerage platform on which you trade.
Important Risk Information
Risk associated with equity investing includes stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.
There can be no assurance that a liquid market will be maintained for ETF shares.
Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.
Diversification does not ensure a profit or guarantee against loss.
Investments in small-sized companies may involve greater risks than in those of larger, better known companies. Returns on investments in stocks of small companies could trail the returns on investments in stocks of larger companies.
Foreign investments involve greater risks than US investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.
Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.
Returns on investments in stocks of large US companies could trail the returns on investments in stocks of smaller and mid-sized companies.
The values of debt securities may decrease as a result of many factors, including, by way of example, general market fluctuations; increases in interest rates; actual or perceived inability or unwillingness of issuers, guarantors or liquidity providers to make scheduled principal or interest payments; illiquidity in debt securities markets; and prepayments of principal, which often must be reinvested in obligations paying interest at lower rates.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
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.
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.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA , SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., member FINRA, is the distributor for DIA, MDY and SPY, all unit investment trusts. ALPS Portfolio Solutions Distributor, Inc., member FINRA, is the distributor for Select Sector SPDRs. ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with State Street Global Advisors Funds Distributors, LLC.
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