State Street Global Advisors (SSGA), the asset management arm of
State Street Corporation (NYSE:STT) today announced the launch of
three single-country advanced beta SPDR ETFs. These ETFs aim to
represent the performance of a combination of three factors,
quality, value and low volatility, with the objective of giving
investors improved risk-adjusted return potential when investing in
single-country markets. The new ETFs add to the existing nine
multi-factor SPDR MSCI Quality Mix ETFs that were launched in June
2014.
The three new ETFs, which began trading on the NYSE Arca as of
September 18, 2014, include:
- SPDR MSCI Mexico Quality Mix ETF
(QMEX)
- SPDR MSCI South Korea Quality Mix ETF
(QKOR)
- SPDR MSCI Taiwan Quality Mix ETF
(QTWN)
“Our new SPDR MSCI Quality Mix ETFs provide investors with an
opportunity to fine-tune their international exposure with a
single-country portfolio that captures multiple investment themes,”
said James Ross, executive vice president and global head of SPDR
Exchange Traded Funds at State Street Global Advisors.
“Multi-factor advanced beta strategies combine factor tilts that
can help achieve diversification by using factors that have shown
negative or low correlation. These exposures are appealing to
investors as they can behave differently in similar market
environments in terms of risk and return.”
Investors may look to each of the recently launched Quality Mix
ETFs to add strategic elements to their core portfolio. The
selection of exposures available range from international with the
SPDR MSCI EAFE Quality Mix ETF (QEFA), which includes 22 markets in
Europe, Australaisa and Far East countries, to emerging markets,
with the SPDR MSCI Emerging Markets Quality Mix ETF (QEMM), which
captures large- and mid-cap representation across 21 emerging
markets countries and global with the SPDR MSCI World Quality Mix
ETF (QWLD). Additional country specific funds include Australia
(QAUS), Canada (QCAN), Germany (QDEU), Japan (QJPN), Spain (QESP)
and the United Kingdom (QGBR). The funds give investors
opportunities to consider access to precise multi-factor investment
across markets.
Advanced beta, also known as alternative or smart beta, refers
to a set of approaches that deviate from the traditional
cap-weighted model and instead weight indices or securities based
on alternative rules-based methodologies. Designed to represent the
performance of quality, value and low volatility factor strategies
across global markets in a single composite index, the MSCI Quality
Mix A-Series Indexes are an equal weighted combination of the MSCI
Value Weighted, MSCI Minimum Volatility and MSCI Quality Indexes.
The MSCI Minimum Volatility Index may be replaced with its
corresponding MSCI Risk Weighted Index in the event that there is
too much concentration or too few stocks in the index.
The three new SPDR MSCI Quality Mix ETFs feature an expense
ratio of 0.40 percent.
For more information on these innovative advanced beta SPDR ETFs
and the MSCI Quality Mix A-Series Index methodology, visit
www.spdrs.com.
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.
In general, ETFs can be expected to move up or down in value
with the value of the applicable index. Although ETF shares may be
bought and sold on the exchange through any brokerage account, ETF
shares are not individually redeemable from the Fund. Investors may
acquire ETFs and tender them for redemption through the Fund in
Creation Unit Aggregations only. Please see the prospectus for more
details.
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.
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.
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.
Although subject to the risks of common stocks, low volatility
stocks are seen as having a lower risk profile than the overall
markets. However, a fund that invests in low volatility stocks may
not produce investment exposure that has lower variability to
changes in such stocks' price levels.
A "quality" style of investing emphasizes companies with high
returns, stable earnings, and low financial leverage. This style of
investing is subject to the risk that the past performance of these
companies does not continue or that the returns on "quality" equity
securities are less than returns on other styles of investing or
the overall stock market.
Foreign investments involve greater risks than U.S. investments,
including political and economic risks and the risk of currency
fluctuations, all of which may be magnified in emerging
markets.
Derivative investments may involve risks such as potential
illiquidity of the markets and additional risk of loss of
principal.
Investments in small/mid-sized companies may involve greater
risks than in those of larger, better known companies.
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.
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.
"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.
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.
CORP-1097
State Street CorporationElizabeth Bartlett,
+1-617-662-2903www.statestreet.com@StateStreetorRiver
CommunicationsTroy Mayclim, +1-914-686-5599
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