State Street Global Advisors Launches Preferred Stock ETF
September 17 2009 - 10:15AM
Business Wire
State Street Global Advisors (SSgA), the investment management
arm of State Street Corporation (NYSE: STT), today announced that
the SPDR® Wells Fargo® Preferred Stock ETF (Symbol: PSK) began
trading on the NYSE Arca on September 17, 2009. Its annual expense
ratio is 0.45 percent.
The SPDR Wells Fargo Preferred Stock ETF seeks to track the
performance of the Wells Fargo® Hybrid and Preferred Securities
Aggregate Index. The index includes non-convertible preferred
securities listed on the NYSE or NYSE Arca that have a par amount
of $25; are rated investment grade by Moody's Investors Service,
Inc. or Standard & Poor's Ratings Services; and have a minimum
monthly trading volume during each of the last six months of at
least 250,000 trading units. As of July 31, 2009, the index
provides exposure to more than 160 securities.
Preferred stock is an asset class that shares some similarities
with both common stock and bonds. Preferred stock represents
partial ownership in a company, however, shareholders usually do
not have voting rights, and similar to bonds, the primary source of
return is usually generated by a fixed payment – a dividend that
must be paid out before dividends to common stockholders.
“The SPDR Wells Fargo Preferred Stock ETF provides financial
advisors and investors with improved access to the benefits of this
unique asset class, which include high yields and a low correlation
to both bonds and common stock,” said Anthony Rochte, senior
managing director at State Street Global Advisors. “Developed in
response to investor demand, the SPDR Wells Fargo Preferred Stock
ETF is based on an index that offers a level of diversification
that is unmatched by other benchmarks in this asset class.”
State Street Global Advisors is one of the largest ETF providers
in the United States and globally. U.S. assets under management for
SPDR ETFs totaled more than $160 billion as of August 31, 2009.
About State Street Global Advisors
State Street Global Advisors, the investment management arm of
State Street Corporation (NYSE: STT), delivers investment
strategies and integrated solutions to clients worldwide across
every asset class, investment approach and style. With $1.6
trillion in assets under management at June 30, 2009, State Street
Global Advisors has investment centers in Boston, Hong Kong,
London, Montreal, Paris, Singapore, Sydney, Tokyo, Toronto and
Zurich, and offices in 26 cities worldwide. For more information,
visit State Street Global Advisors at www.ssga.com.
The “SPDR®” trademark is used under license from the McGraw-Hill
Companies, Inc. No financial product offered by State Street
Corporation or its affiliates is sponsored, endorsed, sold or
promoted by McGraw-Hill.
The Wells Fargo® Hybrid and Preferred Securities Aggregate Index
is a trademark of Wells Fargo & Company and has been licensed
for use by State Street Global Advisors. The product is not
sponsored, endorsed, sold or promoted by Wells Fargo & Company
or its affiliates and Wells Fargo & Company makes no
representation regarding the advisability of investing in this
product.
ETFs trade like stocks, are subject to investment risk and will
fluctuate in market value.
Neither diversification nor asset allocation ensure a profit or
guarantee against loss.
Because of their narrow focus, financial sector funds tend to be
more volatile. Preferred Securities are subordinated to bonds and
other debt instruments, and will be subject to greater credit risk.
The municipal market can be affected by adverse tax, legislative or
political changes and the financial condition of the issuers of
municipal securities. The fund may contain interest rate risk (as
interest rates rise bond prices usually fall); the risk of issuer
default; inflation risk; and issuer call risk. The Fund may invest
in U.S. dollar-denominated securities of foreign issuers traded in
the United States.
Distributor: State Street Global Markets, LLC, member FINRA,
SIPC, a 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.
Before investing, consider the funds investment objectives,
risks, charges and expenses. To obtain a prospectus which contains
this and other information, call 1-866-787-2257 or visit
www.spdrs.com. Read it carefully.
COPR-0011
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