Reduces Fees on Entire Select Sector SPDR Suite
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today announced
that the Financial Services Select Sector SPDR® Fund (XLFS) and the
Real Estate Select Sector SPDR® Fund (XLRE) began trading on the
NYSE Arca. Providing precise exposure to financial services and
real estate sectors, the newest Select Sector SPDRs reflect
revisions to the Global Industry Classification Standard (GICS)
structure announced by S&P Dow Jones Indices that will be
implemented in August 2016. XLFS and XLRE are the first new Select
Sector SPDRs launched since the suite was introduced in 1998.
“Investors of all types are increasingly seeking to express a
targeted investment viewpoint. Our sector SPDR ETFs have offered
efficient exposure since 1998, and remain the industry standard,”
said James Ross, executive vice president and global head of SPDR
Exchange Traded Funds at State Street Global Advisors. “As
investors continue to expand their uses of sector ETFs, they are
interested in gaining more granular exposure to financial
companies, in particular being consistent with evolutions in the
GICS standards. For those looking to maintain broad-based exposure
to financials, our existing Financial Select Sector SPDR (XLF),
which provides the most liquid1 exposure to the broader financial
sector, will remain unchanged.”
Concurrent with the launch of both XLFS and XLRE, the expense
ratios for the entire Select Sector SPDR ETF suite will be reduced
from 0.15 percent to 0.14 percent. The gross expense ratio for XLFS
and XLRE is 0.15 percent and after expense waivers of 0.01 percent
the net expense ratio is 0.14 percent.2
“When we launched Sector SPDRs in 1998, our expense ratio was
0.65 percent. As more and more institutional and now individual
investors have incorporated Sector SPDRs into their investment
strategies, we have been able to drive our overall expenses down,”
said Dan Dolan, Director – Wealth Management Strategies, Select
Sector SPDR Trust3. “The result is that today, Select Sector SPDRs
are the undisputed leader in sector ETFs by assets and
liquidity.”4
The new XLFS fund will seek to track the Financial Services
Select Sector Index, which includes companies from the following
industries: diversified financial services, insurance, banks,
capital markets, consumer finance, thrifts and mortgage real estate
investment trusts (REITs). The new XLRE fund will seek to track the
Real Estate Select Sector Index, which includes real estate
management, development and REITs, with the exception of mortgage
REITs.
Both indices are maintained in accordance with the following
criteria, which is consistent with the methodology for the other
Select Sector Indexes:
- Each security in the index is a
constituent company of the S&P 500 Index; and
- Both indices are calculated by Standard
& Poor's using a modified market capitalization
methodology.
SSGA’s leading suite of US-listed select sector SPDR ETFs
includes 11 funds with $84.3 billion in assets as of 9/30/15.5
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 Corporation. 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 financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions* in assets under
management, our scale and global footprint provide unrivaled access
to markets and asset classes, and allow us to deliver expert
insights and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.4 trillion as of June 30,
2015. Assets under management include approximately $26.7 billion
(as of June 30, 2015), for which State Street Global Markets, LLC,
an affiliate of SSgA, serves as the distribution agent.
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.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETF's net asset value. Brokerage commissions will reduce
returns. Index-based ETFs are passively managed and seek to track
an index of securities. Expenses may cause the ETF's returns to
deviate from the returns of the index.
Equity Securities may increase or decrease as a result of
market fluctuations, changes in interest rates and perceived trends
in stock prices.
Financial Services Sector Concentration
Risk. Financial services companies may be subject to the
risks of government regulation, deterioration of credit markets,
losses resulting from financial difficulties of borrowers and
losses resulting from investment activities.
Non-diversified funds invest a greater portion of assets
in fewer securities and therefore may be more vulnerable to adverse
changes in the market.
Real Estate Investment Trusts (REITS) investing may be
subject to risks including, but not limited to, declines in the
value of real estate, risks related to general economic conditions,
changes in the value of the underlying property owned by the trust
and defaults by borrowers.
The S&P 500 is an index of approximately 500 common stocks
that is generally considered representative of the U.S. stock
market. The index is weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the
total market value of all domestic common stocks.
You cannot invest directly in an index.
ALPS Portfolio Solutions Distributor, Inc., a registered
broker-dealer, is the distributor for the Select Sector SPDR
Trust.
ALPS Portfolio Solutions Distributor, Inc. is not affiliated
with State Street Global Markets, LLC
Investing involves risk, including the risk of loss of
principal.
Before investing, consider the fund's 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
CORP-1625
SEL001919
1 As measured by trading volumes, Source: Bloomberg,
9/30/2015.
2 SSGA Funds Management, Inc. (the “Adviser”) has contractually
agreed to waive its advisory fee and reimburse certain expenses,
until January 31, 2017, so that the annual Fund operating expenses
of the Fund are limited to no more than 0.14% of the Fund's average
daily net assets (exclusive of non-recurring account fees and
extraordinary expenses). The Adviser may continue such waiver
and/or reimbursement from year to year, but there is no guarantee
that the Adviser will do so after January 31, 2017. The waiver
and/or reimbursement may not be terminated prior to January 31,
2017 except with the approval of The Select Sector SPDR Trust's
Board of Trustees.
3 Dan Dolan is a Registered Representative of ALPS Portfolio
Solutions Distributor, Inc.
4 Source – Bloomberg, SSGA. Period measured: August 31, 2014 –
August 31, 2015
5 Source: SSGA, Bloomberg
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version on businesswire.com: http://www.businesswire.com/news/home/20151008006147/en/
State Street CorporationAndrew Hopkins, +1 617
664-2422Ahopkins2@StateStreet.comorTroy Mayclim, +1
914-686-5552tmayclim@riverinc.com
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