State Street Global Advisors Introduces Actively Managed SPDR ETF to Help Investors Manage Risk-on and Risk-off Market Cycles
September 10 2014 - 10:21AM
Business Wire
State Street Global Advisors (SSGA), the asset management arm of
State Street Corporation (NYSE:STT), today announced the SPDR SSGA
Risk Aware ETF (Symbol: RORO) began trading on the NYSE Arca on
September 10, 2014. The new fund is actively managed by SSGA’s
Active Quantitative Equity Group and is based on the firm’s
proprietary quantitative market risk measurement model. The model
is intended to help identify, quantify and benefit from risk
factors moving the markets at any given time.
“The SPDR SSGA Risk Aware ETF is targeted at providing investors
an innovative solution for capitalizing on risk-on and risk-off
fluctuations in the US equity market,” said Scott Ebner, senior
managing director and global head of product development and
research at State Street Global Advisors. “Active quant strategies
have been a core competency of SSGA’s institutional asset
management and mutual fund businesses for decades, and RORO is the
first active equity ETF managed by this SSGA investment team.”
The SPDR SSgA Risk Aware ETF seeks to provide competitive
returns compared to the broad U.S. equity market and capital
appreciation. Among the factors in the model are beta, size, credit
risk, credit spreads, gold price, US dollar exchange rates and
implied volatility. During periods of anticipated high risk, the
portfolio’s composition will be defensive and may increase exposure
to large cap and / or value companies. During periods of
anticipated low risk, the portfolio’s composition will be
risk-seeking and may increase exposure to small cap and / or growth
companies. In periods of moderate risk, the portfolio’s composition
will more closely reflect the broader US equity market and may have
greater exposure to midcap companies. The SPDR SSGA Risk Aware
ETF’s annual expense ratio is 0.50 percent.
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 investors with the flexibility to select investments
that are precisely 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.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.
Past performance is not a guarantee of future results.
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.
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.
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.
The Fund is actively managed and may underperform its
benchmarks. An investment in the fund is not appropriate for all
investors and is not intended to be a complete investment program.
Investing in the fund involves risks, including the risk that
investors may receive little or no return on the investment or that
investors may lose part or even all of the investment.
Non-diversified funds that focus on a relatively small number of
[stocks, issuers, countries] tend to be more volatile than
diversified funds and the market as a whole.
Companies with large market capitalizations go in and out of
favor based on market and economic conditions. Larger companies
tend to be less volatile than companies with smaller market
capitalizations. In exchange for this potentially lower risk, the
value of the security may not rise as much as companies with
smaller market capitalizations.
Investments in small/mid-sized companies may involve greater
risks than in those of larger, better known companies.
The Fund may emphasize a "growth" style of investing. The market
values of growth stocks may be more volatile than other types of
investments. The prices of growth stocks tend to reflect future
expectations, and when those expectations change or are not met,
share prices generally fall. The returns on "growth" securities may
or may not move in tandem with the returns on other styles of
investing or the overall stock market.
A "value" style of investing emphasizes undervalued companies
with characteristics for improved valuations. This style of
investing is subject to the risk that the valuations never improve
or that the returns on "value" equity securities are less than
returns on other styles of investing or the overall stock
market.
"SPDR" is a registered trademark of Standard & Poor’s
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.
CORP-1087
Expiration date:9/30/2015
State Street CorporationElizabeth Bartlett, +1
617-662-2903www.statestreet.com@StateStreetorRiver
CommunicationsTroy Mayclim, +1 914-686-5599
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