Changes Provide Investors with More Core Solutions Targeting Flagship S&P® Dow Jones Indices
BOSTON – State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), and creators of the world’s first ETFs, today announced index changes to four of its low-cost SPDR® Portfolio ETFs™, with a combined $11.3 billion1 in assets.
The index changes seek to respond to demand to provide a more stratified ETF toolkit that targets segments of the US equity market in a cost-effective way. For investors who prefer broad market exposure, the newly positioned funds include the only ETF currently available tracking the S&P Composite 1500® Index.
“Our goal is to offer products with purpose, providing a suite of low-cost precision exposures in an ETF wrapper that can then be deployed by investors as they build portfolios to deliver target investment outcomes,” said Rory Tobin, Global Head of SPDR Business at State Street Global Advisors. “There is strong investor demand for S&P benchmarks with over $12.5 trillion in global assets tracking their indices.2 SPDR is now the only ETF provider that offers the full spectrum of low-cost S&P ETFs spanning the S&P 500®, S&P MidCap 400®, S&P SmallCap 600® and S&P Composite 1500®—as well as the S&P 500® Growth, Value and Dividend style exposures.”
“Almost 27 years ago to the day, we launched SPY, the SPDR S&P 500 ETF Trust, the innovation that sparked the ETF investing revolution,” said Sue Thompson, Head of SPDR Americas Distribution at State Street Global Advisors. “Today we continue our history of democratizing investing with funds among the lowest cost in the industry—including an ETF indexed to the S&P 500 with a total expense ratio of 3 basis points. Taken together, our S&P products are designed to cater to both the ‘buy and hold’ investor as well as to those that value the flexibility of industry-leading levels of liquidity. In short, whichever feature investors value, we have a suite of S&P ETFs to suit their potential needs.”
The index and name changes detailed below are effective as of market open on January 24, 2020
|New Benchmark||Expense Ratio|
SPDR Portfolio Large Cap ETF
|SPDR Portfolio S&P 500® ETF||
SSGA Large Cap Index
|S&P 500 Index™||
|SPDR Portfolio Mid Cap ETF||SPDR Portfolio S&P 400 Mid Cap ETF||
S&P 1000® Index
|S&P MidCap 400® Index™||
|SPSM||SPDR Portfolio Small Cap ETF||SPDR Portfolio S&P 600 Small Cap ETF||SSGA Small Cap Index||
S&P SmallCap 600® IndexSM
|SPTM||SPDR Portfolio Total Stock Market ETF||SPDR Portfolio S&P 1500 Composite Stock Market ETF||SSGA Total Stock Market Index||
S&P Composite 1500® Index
Launched in 2017, the SPDR Portfolio suite was designed to give investors greater choice in low-cost ETFs. Comprising 22 SPDR ETFs that provide low-cost access to a wide range of core equity and fixed income asset classes, the suite of funds has been widely embraced by investors who have added nearly $40 billion of assets to the fund range in just over two years, bringing total assets in the SPDR Portfolio suite to $57.7 billion to date.3 With these changes, nine of 11 low-cost equity SPDR Portfolios ETFs are now benchmarked to S&P indices, driving more consistency across the suite in terms of methodologies and market coverage, simplifying portfolio construction for investors.
In addition to these changes, a voluntary fee waiver of 0.10% will be implemented on the SPDR S&P 600 Small Cap ETF (SLY) to lower the fund’s expense ratio from 0.15% to 0.05% effective as of January 24, 2020.
For more information on State Street’s SPDR ETFs, please visit https://www.ssga.com/us/en/individual/etfs.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. 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.
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 nearly US $3.12 trillion4 under our care.
1Bloomberg Finance L.P., as of 12/31/2019.
2S&P Dow Jones Indices Annual Survey of Assets 2018.
3Bloomberg Finance L.P., as of 12/31/2019.
4This figure is presented as of December 31, 2019 and includes approximately $45 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.
Prior to 01/24/2020, the SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) was known as the SPDR Portfolio Total Stock Market ETF (SPTM), the SPDR Portfolio S&P 500 ETF (SPLG) was known as the SPDR Portfolio Large Cap ETF (SPLG), the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) was known as the SPDR Portfolio Mid Cap ETF (SPMD), and the SPDR Portfolio S&P 600 Small Cap ETF (SPSM) was known as the SPDR Portfolio Small Cap ETF (SPSM).
Important Risk Information:
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 parties without SSGA's express written consent.
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.
Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.
Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.
Expiration Date: 01/31/2021