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Low-Cost Core ETF Investing Efficient building blocks for a strong core
State Street SPDR Portfolio ETFs are a comprehensive suite of low-cost portfolio building blocks. Backed by our indexing expertise and heritage as an ETF pioneer, our low-cost core ETFs efficiently deliver exposures to asset classes that are the foundation of strong, flexible portfolios.
Built With Purpose and Attention to Detail
As the creator of the world’s first ETFs,1 we believe in their power to provide investors low-cost, tax-efficient, transparent tools for asset allocation, one of the leading drivers of portfolio returns.2 This belief drives our approach to low-cost core investing.
We designed these funds by focusing on the details that matter to investors and their advisors when it comes to building strategic asset allocations, including:
Low Fee
SPDR Portfolio ETFs are diversified and tax-efficient equity and fixed income index funds, available from as little as 3 basis points, with a median cost of 6 basis points.
Total Cost of Ownership
Every basis point counts when it comes to core investing—and not just in terms of the expense ratio. We work with our partners in an effort to minimize transaction costs and keep the total cost of ownership as low as possible.
Liquidity
We collaborate with capital markets participants and a diverse set of investors to pursue robust liquidity and tight trading spreads in all market environments.
Share Price
We thoughtfully set the share price for each fund as part of our effort to minimize total cost of ownership and make it easy for investors to build comprehensive portfolios.
Benchmark Selection
Our low-cost core ETFs give investors exposure to indices managed by S&P, Bloomberg Barclays and other well-known index providers. Building our suite around these index families reduces the chance that investors will have overlapping exposures in their portfolios.
Tracking Error
Tracking error can quickly erode the benefits of a low expense ratio. We use our portfolio management expertise to minimize deviation from the benchmark.
Explore Low-Cost Core ETF Investing
Learn how investors are using low-cost core ETFs to build efficient portfolios that are designed to achieve a variety of investment objectives across the spectrum of risk tolerance.
Our Insights on Low-Cost Core Investing
Four Principles of Core Construction
An effective core may differ from one investor to the next, but four construction principles apply to all.
Five Ideas for Your Core Portfolio
See examples of how to build low-cost core portfolios that can be tailored to pursue risk and return objectives.
Backed by an ETF and Indexing Leader
SPDR Portfolio ETFs are backed by the same team and processes that have made us a leader in the field of ETF investing. Our innovation in ETFs is driven by our commitment to delivering low-cost, efficient solutions for investors and our more than 40 years of indexing experience.
creator of the world’s first ETFs 1
in assets globally across State Street SPDR ETFs 3
SPDR ETFs globally across all major asset classes 4
Our Solutions
SPDR Portfolio ETFs provide investors access to a full range of equity and fixed income exposures that can be used to build broad, diversified portfolios. Our comprehensive suite of low-cost core ETFs is backed by partnerships with S&P, Bloomberg Barclays and other of the industry’s most well-known and widely used index providers.
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.
2 Gary P. Brinson, L. Randolph Hood, Gilbert L. Beebower, "Determinants of Portfolio Performance", Financial Analyst Journal Vol.42 Issue 4 1986.
3 State Street Global Advisors, as of September 30, 2020.
4 State Street Global Advisors, as of November 30, 2020.
Important Risk Information
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.
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.
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.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.