Newest SPDR ETF Keeps Industry’s Largest Sector Suite
Aligned with Upcoming GICS Changes
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the Communication Services Select Sector SPDR Fund (XLC). The fund
will provide exposure to the new Communication Services sector,
unveiled by S&P Dow Jones Indices and MSCI Inc., following the
annual review of the Global Industry Classification Standard (GICS)
structure in November 2017.
The reclassification of the GICS structure will transform the
existing Telecommunications Services sector, expanding it to
include selected companies from the Information Technology and
Consumer Discretionary sectors. It will be renamed Communication
Services effective September 21, 2018.
In addition to the fund launch of XLC, in accordance with the
constituent changes under the GICS reclassification for the
existing Information Technology and Consumer Discretionary sectors,
State Street Global Advisors is announcing that it will rebalance
the Technology Select Sector SPDR Fund (XLK) and the Consumer
Discretionary Select Sector SPDR Fund (XLY) to reflect the
underlying index changes, such changes to be effective after the
close on September 21, 2018.
“State Street Global Advisors always seeks to provide investors
with the tools necessary to implement sector views across the
entire GICS framework,” said Noel Archard, global head of product
for State Street ETFs. “The launch of XLC allows our clients
immediate access to this new investment opportunity that will
represent roughly 10 percent of the S&P 500 Index in terms of
market capitalisation.”
With the launch of XLC, State Street Global Advisors’ suite of
US-listed sector-based SPDR® ETF solutions includes 33 funds with
$168 billion in assets as of June 12, 2018.
“Existing shareholders of XLK and XLY do not need to take action
at this time; however, investors will likely want to analyze their
sector positions. Given our heritage as a creator of the World’s
first ETFs1, and the breadth of our insights and data, we are
prepared to help investors navigate these changes by leveraging our
capabilities as a steward of $2.73 trillion in assets under
management and 25 years of managing ETFs,” added Archard.
To learn more about State Street Global Advisors’ suite of
US-listed select sector ETFs, click here.
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 four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of active and
index strategies to create cost-effective solutions. As stewards,
we help portfolio companies see that what is fair for people and
sustainable for the planet can deliver long-term performance. And,
as pioneers in index, ETF, and ESG investing, we are always
inventing new ways to invest. As a result, we have become the
world’s third largest asset manager with nearly US $2.73 trillion*
under our care.
*This figure is presented as of March 31, 2018 and includes
approximately $56 billion of assets with respect to SPDR products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
All ETFs are subject to risk, including possible loss of
principal. Sector ETF products are also subject to sector
risk and non-diversification risk, which generally result in
greater price fluctuations than the overall market.
Select Sector SPDR Funds bear a higher level of risk than
more broadly diversified funds.
Equity securities may fluctuate in value in response to
the activities of individual companies and general market and
economic conditions.
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.
While the shares of ETFs are tradable on secondary markets, they
may not readily trade in all market conditions and may trade at
significant discounts in periods of market stress.
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.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect 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. ALPS Portfolio Solutions Distributor, Inc. is
distributor for Select Sector SPDRs. ALPS Portfolio Solutions
Distributor, Inc. is not affiliated with State Street Global
Advisors Funds Distributors, LLC.
Before investing, consider the funds’ investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, visit
spdrs.com to download a prospectus or summary prospectus or call
800.997.7327. Read it carefully before investing.
2150318.2.1.NA.RTL
SSL000921
1 Important Disclosure: ETFs managed by State Street Global
Advisors have the oldest inception dates within the US, Hong Kong,
Australia, and Singapore. State Street Global Advisors launched the
first ETF in the US on January 22, 1993; launched the first ETF in
Hong Kong on November 11, 1999; launched the first ETF in Australia
on August 24, 2001; and launched the first ETF in Singapore on
April 11, 2002.
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version on businesswire.com: https://www.businesswire.com/news/home/20180619005812/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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