BOSTON July 28, 2020 – State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR® S&P 500 ESG ETF (EFIV). Providing investors an opportunity to tap into ESG investing at the core of their portfolio with an expense ratio of just 10 basis points, EFIV enhances both SPDR’s ESG and S&P 500 ETF offerings, seeking to help investors incorporate ESG while achieving a risk and return profile comparable to the S&P 500. EFIV seeks to track the S&P 500 ESG Index (the “Index”), which is designed to measure the performance of securities meeting certain sustainability criteria (i.e., criteria related to environmental, social and governance factors), while maintaining a similar overall industry group weight as the S&P 500 Index.
“ESG investing is approaching a critical inflection point. The collective call for change is growing louder and investors are increasingly taking a stand through their investment choices,” said Sue Thompson, Head of SPDR Americas Distribution at State Street Global Advisors. “EFIV meets growing demand for cost effective solutions that help put ESG investing into action by offering investors an ETF that seeks to track a more sustainable version of one of the most renowned benchmarks in the world. As ESG factor-based strategies pivot from check-the-box components to must-have ingredients in every portfolio, State Street remains committed to providing a broader range of ESG solutions.”
“S&P Dow Jones Indices (S&P DJI) has a longstanding relationship with State Street’s SPDR business that dates back more than 27 years, and we’re excited to expand this ongoing collaboration today,” added Dan Draper, Chief Executive Officer at S&P DJI. “We’re delighted that State Street has licensed the S&P 500 ESG Index for its new fund, incorporating ESG factors into the core S&P 500 benchmark, which is widely regarded as the best single gauge of large-cap U.S. equities.”
With over $11 trillion indexed or benchmarked to the S&P 500, the index is one of the most closely followed equity barometers in the world. Comprised of 500 companies in leading industries and covering approximately 80% of available market capitalization in the U.S., the S&P 500 is the benchmark of choice for countless investors seeking broad, diversified exposure to large-cap U.S. equities. All constituents of the S&P 500 are eligible for inclusion in the Index, except for companies that:
- Are involved with tobacco-related products and services, based on certain levels of production, revenue or ownership;
- Are involved in controversial weapons, including cluster weapons, landmines, biological or chemical weapons, depleted uranium weapons, white phosphorus weapons, or nuclear weapons, or hold certain ownership stakes in a company involved in these activities;
- Have a United Nations Global Compact (“UNGC”) score in the bottom 5% of all UNGC-scored companies globally;
- Have an S&P DJI ESG Score that falls within the worst 25% from each Global Industry Classification Standard (GICS) industry group;
- Do not have (i) coverage for tobacco- and controversial weapons-related involvement from the Index’s third-party data providers for such information; (ii) a UNGC score determined by Arabesque; or (iii) an S&P DJI ESG Score.
State Street Global Advisors remains committed to helping the world’s governments, institutions and financial advisors reach their ESG investing goals. We began managing our first ESG portfolio more than 35 years ago and today manage $286 billion in ESG assets on behalf of our global clients. As stewards of our clients’ capital, we help investors see that what is fair for people and sustainable for the planet can deliver long-term performance.
For more information on the SPDR ETF suite, visit www.ssga.com/etfs.
The "S&P 500 ESG Index" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by State Street Global Advisors (“SSGA”). S&P® and S&P 500® 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 SPDJI and sublicensed for certain purposes by SSGA. SSGA’s SPDR S&P 500 ESG ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 ESG Index.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are sponsored by affiliates of State Street Global Advisors. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit www.ssga.com/etfs.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third-largest asset manager with US $3.05 trillion* under our care.
*This figure is presented as of June 30, 2020 and includes approximately $69.52 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.