Investors are using low-cost core ETFs to build efficient portfolios that are designed to achieve a variety of investment objectives across the risk spectrum.
Spanning US and international equity and fixed income, SPDR® Portfolio ETFs™ have an average expense ratio of just 5 basis points, 94% lower than the average US-listed mutual fund.1 So, whether you seek to generate income, manage risk or grow capital, our 22 low-cost building blocks make it easy to construct a diversified core — for less.
Core Portfolio Construction Principles
An effective core may differ from one investor to the next, but four construction principles apply to all.
ETFs may be an ideal core holding because they offer:
Efficient building blocks for a strong core
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.
As the creator of the world’s first ETFs,4 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.5 This belief drives our approach to low-cost core investing. Designed to deliver what matters to investors, SPDR Portfolio ETFs offer:
SPDR Portfolio ETFs are diversified and tax-efficient equity and fixed income funds, available from as little as 3 basis points, with an average cost of 6 basis points.
We collaborate with capital markets participants and a diverse set of investors to pursue robust liquidity and tight trading spreads in all market environments.
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.
Our low-cost core ETFs give investors exposure to indices managed by S&P, Bloomberg 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.
Our continued 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 4
in assets globally across State Street SPDR ETFs 6
SPDR ETFs globally across all major asset classes 6
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1 State Street Global Advisors per Morningstar, as of 11/17/2022.
2 Morningstar Direct. Data as of 09/30/2022. Average Prospectus Gross Expense ratio for index ETFs and open-end index mutual funds oldest share class as defined by Morningstar.
3 Morningstar, as of 9/30/2022.
4 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.
5 Gary P. Brinson, L. Randolph Hood, Gilbert L. Beebower, "Determinants of Portfolio Performance", Financial Analyst Journal Vol.42 Issue 4 1986.
6 Morningstar, as of 9/30/2022.
Important Risk Information
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.
Investing involves risk including the risk of loss of principal.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. 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). There are additional risks for funds that invest in mortgage-backed and asset-backed securities including the risk of issuer default; credit 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.