SPDR® MSCI EAFE Fossil Fuel Reserves Free ETF and SPDR MSCI
Emerging Markets Fossil Fuel Reserves Free ETF Seek to Provide
Investors with an Opportunity to Limit Their Exposure to Companies
Owning Fossil Fuel Reserves
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), announced that the
SPDR MSCI EAFE Fossil Fuel Reserves Free ETF (EFAX) and the SPDR
MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX) began
trading on the NYSE Arca. Developed to address growing client
demand for ESG strategies and help investors divest from companies
owning fossil fuel reserves while maintaining the benefits of core
exposures to key benchmarks, the newest additions to SSGA’s ESG
line-up are the first MSCI EAFE and Emerging Markets ex Fossil Fuel
Reserves Free ETFs.
“SPDR ETFs continue to build on SSGA’s heritage of ESG
investing,” said Nick Good, co-head of the Global SPDR business at
State Street Global Advisors. “We are excited to add EFAX and EEMX
to our SPDR line-up, complementing the SPDR S&P 500 Fossil Fuel
Reserves Free ETF (SPYX)1 launched in 2015. Together, this suite of
funds is designed to allow investors to maintain geographical
diversification within the broader equity market while using their
capital to create change.”
The SPDR MSCI EAFE Fossil Fuel Reserves Free ETF (EFAX) seeks to
track the MSCI EAFE ex Fossil Fuels Index. The Index is designed to
measure the performance of companies in the MSCI EAFE Index that do
not own fossil fuel reserves. Fossil fuel reserves are defined as
economically and technically recoverable sources of crude oil,
natural gas and thermal coal but do not include metallurgical or
coking coal, which are used in connection with steel
production.
The SPDR MSCI Emerging Markets Fossil Fuel Reserves Free ETF
(EEMX) seeks to track the MSCI Emerging Markets ex Fossil Fuels
Index. The Index is designed to measure the performance of
companies in the MSCI Emerging Markets Index that do not own fossil
fuel reserves, as defined above. The MSCI Emerging Markets Index
captures large and mid-capitalization representation across 23
emerging market countries.
The gross expense ratio for EFAX is 0.30 percent and the net
expense ratio is 0.20 percent. The gross and net expense ratio for
EEMX is 0.30 percent.
“With governments across the world committed to addressing
climate change, investors have been increasingly looking to
minimize the potential negative impact that exposure to companies
owning fossil fuel reserves could have on their portfolios as
traditional market-cap based passive strategies that do not screen
out certain industries or business practices may not account for
this risk,” said Christopher McKnett, managing director and head of
ESG at State Street Global Advisors. “SSGA has managed ESG
portfolios for 30 years and with client demand for these strategies
higher than it’s ever been, this suite of SPDR funds is designed to
provide investors with passively managed tools to divest from
companies owning fossil fuel reserves while maintaining exposure to
core US, international and emerging markets benchmarks.”
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 $2.3 trillion as of June 30, 2016.
AUM reflects approx. $40 billion (as of 6/30/2016) with respect to
which State Street Global Markets, LLC (SSGM) serves as marketing
agent; SSGM and State Street Global Advisors are affiliated.
Important Risk Information
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor. All material has been obtained from
sources believed to be reliable. There is no representation or
warranty as to the accuracy of the information and State Street
shall have no liability for decisions based on such
information.
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.
Concentrated investments in a particular industry or
sector may be more vulnerable to adverse changes in that industry
or sector.
Currency exchange rates between the U.S. dollar and
foreign currencies may have significant volatility and may cause
the value of the fund’s investments to decline.
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.
Equity securities may fluctuate in value in response to
the activities of individual companies and general market and
economic conditions.
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.
Mid-sized companies may involve greater risks than in
those of larger, better known companies, including increased
volatility and periods of illiquidity.
No fossil fuel reserve ownership may have an adverse
effect on a company’s profitability and, in turn, the returns of
the fund.
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.
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.
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
866.994.1384 or visit spdrs.com. Read it
carefully.
© 2016 State Street Corporation- All Rights Reserved
State Street Global Advisors, One Lincoln Street, Boston,
Massachusetts 02111
Not FDIC Insured –No Bank Guarantee – May Lose Value
CORP-2313
Exp. Date: 10/31/17
1 Prior to August 31, 2016, the SPDR® S&P® 500 Fossil Fuel
Reserves Free ETF was known as the SPDR S&P 500 Fossil Fuel
Free ETF. There were no changes to the investment objective,
strategy or policies of the fund in connection with the fund’s name
change
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version on businesswire.com: http://www.businesswire.com/news/home/20161025006390/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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