State Street Global Advisors Unveils SPDR S&P 500 Buyback ETF
February 05 2015 - 4:58PM
Business Wire
SPYB Provides Investors Precise Exposure To Stocks With The
Highest Buyback Ratios In The S&P 500
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today announced
that the SPDR S&P 500 Buyback ETF (Symbol SPYB) began trading
on the NYSE Arca on February 5, 2015. Providing access to a
portfolio of S&P 500 stocks with the highest buyback ratio,
SPYB offers investors an opportunity to complement their dividend
strategies and potentially improve the risk-return profile of their
portfolio.
“Companies that buy back their own shares have established a
long-term track record of outperforming their peers in both up and
down markets,” said James Ross, executive vice president and global
head of SPDR Exchange Traded Funds at State Street Global Advisors.
“SPYB helps investors access a diversified buyback portfolio to
capture this return stream and complement any existing dividend
strategies.”
The SPDR S&P 500 Buyback ETF seeks to track the performance
of the S&P 500 Buyback Index. The index provides exposure to
the 100 constituent companies in the S&P 500 with the highest
buyback ratio in the last 12 months. The buyback ratio is defined
as the ratio of the total cash put towards buybacks in the trailing
year and the market capitalization of the company as of a reference
date. A “buyback” occurs when a company buys back its own shares
from the marketplace, reducing the number of shares outstanding.
Index constituents are equally weighted and the index is rebalanced
quarterly. The SPDR S&P 500 Buyback ETF’s expense ratio is 0.35
percent.
Over the past three decades, share repurchases have surpassed
cash dividends to become the dominant form of corporate payout in
the United States. From 1980 to 2013, the proportion of
dividend-paying companies has decreased from 78 percent to 40
percent.1 During this same period of time, the proportion of
companies with share buybacks increased from 28 percent to 43
percent.1 This increased use of share buybacks is driven by legal,
tax, and structural changes in the US markets.
1 S&P Dow Jones, as of December 31, 2014
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
For nearly four decades, State Street Global Advisors has been
committed to helping our clients, and the millions who rely on
them, achieve financial security. We partner with many of the
world’s largest, most sophisticated investors and financial
intermediaries to help them reach their goals through a rigorous,
research-driven investment process spanning both indexing and
active disciplines. With trillions* in assets, our scale and global
reach offer clients unrivaled access to markets, geographies and
asset classes, and allow us to deliver thoughtful insights and
innovative solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.45 trillion as of December 31,
2014. This AUM total includes the assets of the SPDR Gold Trust
(approx. $27.3 billion as of December 31, 2014), for which State
Street Global Markets, LLC, an affiliate of State Street Global
Advisors, serves as the marketing agent. Please note that AUM
totals are unaudited.
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.
The gross expense ratio is the fund's total annual operating
expenses ratio. It is gross of any fee waivers or expense
reimbursements. It can be found in the fund's most recent
prospectus.
"SPDR" is a registered trademark of Standard & Poor's
Financial Services LLC ("S&P") and has been licensed for use by
State Street Corporation. STANDARD & POOR'S, S&P, S&P
500 and S&P MIDCAP 400 are registered trademarks of Standard
& Poor's Financial Services LLC. 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, download a prospectus or summary
prospectus now, or talk to your financial advisor. Read it
carefully before investing.
Not FDIC Insured * No Bank Guarantee * May Lose Value
CORP-1292
State Street CorporationBrendan Paul,
+1-617-662-2903www.statestreet.com@StateStreetorRiver
CommunicationsTroy Mayclim, + 1-914-686-5599
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