State Street Global Advisors (SSgA)*, the asset management
business of State Street Corporation (NYSE: STT), today announced
that the SPDR S&P 1500 Value Tilt ETF (Symbol: VLU) and the
SPDR S&P 1500 Momentum Tilt ETF (Symbol: MMTM) began trading on
the NYSE Arca on October 25, 2012. The new SPDR ETFs offer
investors an opportunity to access potential sources of
outperformance with advanced indexing methodologies that
reconfigure how index components are weighted.
The SPDR S&P 1500 Value Tilt ETF seeks to track the
performance of the S&P 1500 Low Valuation Tilt Index. The Index
applies an alternative weighting methodology to the S&P 1500
Index so that stocks with relatively low valuations are overweight
relative to the S&P 1500 Index and stocks with relatively high
valuations are underweight. In constructing the Index, Standard
& Poor’s, Inc. estimates the valuation of each stock in the
S&P 1500 Index based on the ratio of its price to its level of
earnings, cash flow, sales, book value, and dividends.
The weight of each stock in the Index is proportionate to its
market capitalization and sub-portfolio allocation. The Index is
rebalanced annually, and as of 9/30/12 it included approximately
1,472 securities. The SPDR S&P 1500 Value Tilt ETF’s expense
ratio is 0.35 percent.
“Providing advisors and investors with unique opportunities to
take advantage of sources of outperformance relative to standard
cap-weighted indexes and combining the advantages of value and
momentum tilt investing with the benefits of exchange traded funds,
our new SPDR Tilt ETFs further illustrate the growing popularity of
advanced beta investment strategies,” said James Ross, senior
managing director and global head of SPDR Exchange Traded Funds and
head of Intermediary Distribution at State Street Global Advisors.
“We have strong expertise in the advanced beta space which we
define as an objective, consistent, transparent process for
capturing some investment exposure, while retaining the benefits of
traditional indexing.”
The SPDR S&P 1500 Momentum Tilt ETF seeks to track the
performance of the S&P 1500 Positive Momentum Tilt Index. The
Index applies an alternative weighting methodology to the S&P
1500 Index so that stocks with relatively high momentum are
overweight relative to the S&P 1500 Index and stocks with
relatively low momentum are underweight. In constructing the Index,
Standard & Poor’s, Inc. estimates the momentum of each stock in
the S&P 1500 Index based on its price performance over the 11
months ending one month before the index rebalancing date, and
ranks all 1,500 Index constituents in order of momentum.
The weight of each stock in the Index is proportionate to its
market capitalization and sub-portfolio allocation. The Index is
rebalanced quarterly, and as of 9/30/12, included approximately
1,491 securities. The SPDR S&P 1500 Momentum Tilt ETF’s expense
ratio is 0.35 percent.
“The launch of the SPDR S&P 1500 Value Tilt ETF and the SPDR
S&P 1500 Momentum Tilt ETF build on SSgA’s long-standing
expertise in managing both traditional and non-traditional index
strategies and underscore our commitment to developing innovative
ETFs that further expand the investment solutions toolkit for
clients of every size,” Ross continued.
State Street manages more than $337** billion in SPDR ETF assets
worldwide (as of September 30, 2012) and is one of the largest ETF
providers globally.
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 Bank and Trust Company. The
funds provide professional investors with the flexibility to select
investments that are precisely aligned to their investment
strategy. Recognized as the industry pioneer, State Street created
the first ETF in 1993 (SPDR S&P 500® – Ticker SPY). Since then,
we’ve sustained our place as an industry innovator through 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.spdrs.com.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors
worldwide for its disciplined investment process, powerful global
investment platform and access to every major asset class,
capitalization range and style. SSgA is the asset management
business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a
registered investment adviser and wholly owned subsidiary of State
Street Bank& Trust Company.
**This AUM includes the assets of the SPDR Gold Trust (approx.
$75.3 billion as of September 30, 2012), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors
serves as the marketing agent.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Risk associated with equity investing include stock values which
may fluctuate in response to the activities of individual companies
and general market and economic conditions.
The Fund employs a value style of investing that emphasizes
undervalued companies with characteristics for improved valuations,
which may never improve and may actually have lower returns than
other styles of investing or the overall stock market.
The Fund employs a momentum style of investing that emphasizes
investing in securities that have had higher recent price
performance compared to other securities, which is subject to the
risk that these securities may be more volatile and can turn
quickly and cause significant variation from other types of
investments.
"SPDR" is a registered trademark of Standard & Poor
Financial Services LLC ("S&P") and has been licensed for use by
State Street Corporation. No financial product offered by State
Street Corporation or its affiliates is sponsored, endorsed, sold
or promoted by S&P or its Affiliates, and S&P and its
affiliates make no representation, warranty or condition regarding
the advisability of buying, selling or holding units/shares in such
products. Further limitations and important information that could
affect investors' rights are described in the prospectus for the
applicable product.
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. ALPS Distributors, Inc., a
registered broker-dealer, is distributor for SPDR shares, MidCap
SPDRs and Dow Jones Industrial Average, all unit investment trusts
and Select Sector SPDRs.
Before investing, consider the funds investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-787-2257 or visit www.spdrs.com. Read it
carefully.
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