China A Shares SPDR ETF Increases Access to the World’s
Second Largest Economy and Equity Market
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today announced
that the SPDR MSCI China A Shares IMI ETF (Symbol: XINA) began
trading on the NYSE Arca. XINA offers investors access to A shares
of companies incorporated in mainland China which represents
approximately 51 percent of the Chinese equity market1 and was
available only to China-domiciled investors until recently. Unlike
some China A shares ETF offerings that are managed through
third-party sub-advisors, XINA will be managed directly by State
Street Global Advisors Asia Limited, based in Hong Kong.
“Given that China is both the second largest economy and the
second largest equity market in the world, we feel it’s important
to have exposure in your portfolio,” said Michael Arone, chief
investment strategist for State Street Global Advisors’ US
intermediary business. “Broader exposure, with the benefits of
diversification2 may be valuable in the long term as these market
developments create potentially long-term investment opportunities
for A shares even as short-term volatility may remain high.”
“As the Chinese market becomes more accessible to investors
outside of China, clients have asked for an A shares ETF designed
to track a broad-based and well known index,” said Nicholas Good,
chief operating officer of the US intermediary business at SSGA.
“While volatility in the A shares market has been elevated
recently, the Chinese government has announced near-term policy
actions to restore investor confidence and we believe that the
domestic Chinese equity market will continue to emerge as a long
term staple of investor portfolios.”
The SPDR MSCI China A Shares IMI ETF seeks to track the
performance of the MSCI China A International IMI Index. The index
captures large, mid and small cap representation of Chinese
companies with A share listings on the Shanghai or Shenzhen Stock
Exchanges. As of September 30, 2015, the Index was comprised of
1795 constituents.3 Alternative exposures to the A share market,
such as the CSI 300 index and the FTSE A 50 index, can potentially
limit exposure to only large and midcap stocks4. XINA has a gross
and net expense ratio of 0.655 percent.
About SPDR Exchange Traded FundsSPDR 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 AdvisorsFor 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 $2.2 trillion as of September
30, 2015. Assets under management include approximately $25 billion
as of September 30, 2015, for which State Street Global Markets,
LLC, an affiliate of SSGA, serves as the distribution
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.
Chinese securities A shares involves certain investments
risks and investment considerations including, (i) the small size
of the market for Chinese securities relative to the US market, low
volume of trading relative to U.S. securities, lack of liquidity
and in price volatility, (ii) currency devaluations and other
currency exchange rate fluctuations or blockage, (iii) the nature
and extent of intervention by the Chinese government in the Chinese
securities markets, whether such intervention will continue and the
impact of such intervention or its discontinuation, (iv) the
ability of Chinese issuers to unilaterally suspend trading of their
securities, and (v) custody risks associated with investing through
a RQFII.
Foreign (non-U.S.) Securities may be subject to greater
political, economic, environmental, credit and information risks.
Foreign securities may be subject to higher volatility than U.S.
securities, due to varying degrees of regulation and limited
liquidity. These risks are magnified in emerging markets.
Equity securities may fluctuate in value in response to the
activities of individual companies and general market and economic
conditions.
Passively managed funds hold 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 of the
index.
Derivative investments may involve risks such as potential
illiquidity of the markets and additional risk of loss of
principal.
Concentrated investments in a particular industry or sector
may be more vulnerable to adverse changes in that industry or
sector.
Non-diversified funds that focus on a relatively small number
of issuers tend to be more volatile than diversified funds and the
market as a whole.
Standard & Poor’s®, S&P® and SPDR® are registered
trademarks of Standard & Poor’s Financial Services LLC
(S&P); Dow Jones is a registered trademark of Dow Jones
Trademark Holdings LLC (Dow Jones); and these trademarks have been
licensed for use by S&P Dow Jones Indices LLC (SPDJI) and
sublicensed for certain purposes by State Street Corporation. State
Street Corporation’s financial products are not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and third party licensors and none of such
parties make any representation regarding the advisability of
investing in such product(s) nor do they have any liability in
relation thereto, including for any errors, omissions, or
interruptions of any index.
The funds or securities referred to herein are not sponsored,
endorsed, or promoted by MSCI, and MSCI bears no liability with
respect to any such funds or securities or any index on which such
funds or securities are based. The Prospectus contains a more
detailed description of the limited relationship MSCI has with SSGA
Funds Management, Inc. and any related funds.
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. State Street Global Markets,
LLC is the distributor for all registered products on behalf of the
advisor.
The CSI 300 Index is a free-float weighted index that consists
of 300 A-share stocks listed on the Shanghai or Shenzhen Stock
Exchanges.
The FTSE China A50 Index includes the largest 50 A Share Chinese
companies by total market cap.
Before investing, consider the fund’s investment objectives,
risks, charges and expenses, which are described in the fund’s
prospectus. To obtain a prospectus or summary prospectus which
contains information regarding these risks and other information,
call 866.787.2257 or visit spdrs.com. Read it
carefully.
Not FDIC Insured * No Bank Guarantee * May Lose Value
CORP-1646
1 Source: Bloomberg, FactSet, State Street Global Advisors, as
of September 30, 2015.2 The SPDR MSCI China A Shares ETF is a
non-diversified fund. Please see fund’s prospectus for more
information.3 MSCI as of September 30, 20154 The CSI 300 Index and
the FTSE China A50 Index are the indices tracked by the three
largest China A shares ETFs listed on US stock exchanges: db
x-trackers Harvest CSI 300 China A-Shares ETF [ASHR]; Market
Vectors ChinaAMC A-Share ETF [PEK]; and CSOP FTSE China A50 ETF
[AFTY] (based on the net assets as of September 30, 2015)5 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151029005923/en/
State Street CorporationAndrew Hopkins,
+1-617-664-2422Ahopkins2@StateStreet.comorTroy Mayclim,
+1-914-686-5552tmayclim@riverinc.com
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