New Lineup of Single-Country SPDR ETFs Features Lower Expense
Ratios, New Benchmarks and the Addition of the SPDR Solactive Hong
Kong ETF
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced that four
existing single-country SPDR ETFs that provide exposure to Canada,
Germany, Japan and the United Kingdom will change indices, names
and tickers, and carry lower expense ratios. In addition, the firm
will launch the SPDR Solactive Hong Kong ETF (ZHOK), at start of
trading on Wednesday, September 19, 2018.
The SPDR Solactive Hong Kong ETF will track the Solactive GBS
Hong Kong Large & Mid Cap Index, a market capitalization index
designed to measure the equity market performance of large and
mid-cap companies in Hong Kong. As of August 30, 2018, the index
comprised 58 securities. ZHOK has a net expense ratio of 0.14%1 and
begins trading on the NYSE Arca exchange on Wednesday.
In addition to the launch of ZHOK, State Street Global Advisors
is making changes to four single-country ETFs. Effective today,
September 18, 2018, the funds will no longer track
StrategicFactorsTM smart beta indices and will instead track market
capitalization weighted indices designed by Solactive. As a result,
the funds’ names, tickers and expense ratios will change as
detailed below:
Previous Fund Name
(Ticker)
Previous Index
New Fund Name(Ticker)
New Index
PreviousNetExpenseRatio
New
NetExpenseRatio1
SPDR MSCI CanadaStrategicFactors ETF
(QCAN)
MSCI Canada Factor MixA-Series Capped
Index
SPDR Solactive CanadaETF (ZCAN)
Solactive GBS CanadaLarge & Mid Cap
Index
0.30% 0.14%
SPDR MSCI GermanyStrategicFactors ETF
(QDEU)
MSCI Germany FactorMix A-Series Capped
Index
SPDR SolactiveGermany ETF (ZDEU)
Solactive GBS GermanyLarge & Mid Cap
Index
0.30% 0.14%
SPDR MSCI United KingdomStrategicFactors
ETF (QGBR)
MSCI UK Factor Mix A-SeriesCapped
Index
SPDR Solactive UnitedKingdom ETF
(ZGBR)
Solactive GBS United KingdomLarge &
Mid Cap Index
0.30% 0.14%
SPDR MSCI JapanStrategicFactors ETF
(QJPN)
MSCI Japan Factor Mix A-SeriesCapped
Index
SPDR Solactive JapanETF (ZJPN)
Solactive GBS JapanLarge & Mid Cap
Index
0.30% 0.14%
“Investors are seeking traditional market-cap weighted beta
indices when adding country-specific international exposures to
their portfolios,” said Noel Archard, global head of SPDR Product
at State Street Global Advisors. “Launching the SPDR Solactive Hong
Kong ETF, while also changing the underlying indices and lowering
the fees of four single-country SPDRs, provides our clients with an
offering that is better aligned with their approach to
single-country strategies.”
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 $2.72 trillion*
under our care.
*This figure is presented as of June 30, 2018 and includes
approximately $33 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.
1 The gross expense ratio for these funds is 20 basis points.
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. These funds have current fee agreements in place that
reduce fund expenses and if removed or modified will result in
higher expense ratios and reduce fund performance. Such contractual
fee agreements are scheduled to expire on 1/31/2020.
Important Risk Information
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.
A "value" style of investing emphasizes undervalued companies
with characteristics for improved valuations. This style of
investing is subject to the risk that the valuations never improve
or that the returns on "value" equity securities are less than
returns on other styles of investing or the overall stock
market.
Although subject to the risks of common stocks, low volatility
stocks are seen as having a lower risk profile than the overall
markets. However, a fund that invests in low volatility stocks may
not produce investment exposure that has lower variability to
changes in such stocks' price levels.
A "quality" style of investing emphasizes companies with high
returns, stable earnings, and low financial leverage. This style of
investing is subject to the risk that the past performance of these
companies does not continue or that the returns on "quality" equity
securities are less than returns on other styles of investing or
the overall stock market.
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.
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.
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.
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 Distributors, Inc., member FINRA, is distributor for SPDR
S&P 500, SPDR S&P MidCap 400 and SPDR Dow Jones Industrial
Average, all unit investment trusts. ALPS Portfolio Solutions
Distributor, Inc., member FINRA, is distributor for Select Sector
SPDRs. ALPS Distributors, Inc. and ALPS Portfolio Solutions
Distributor, Inc. are 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, call
1-866-787-2257, download a prospectus or summary prospectus now, or
talk to your financial advisor. Read it carefully before
investing.
State Street Global Advisors Funds Distributors, LLC, member
FINRA, SIPC, 1 Iron Street Boston, MA 02210.
Not FDIC Insured - No Bank Guarantee - May Lose Value
Exp date: 9/30/19
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version on businesswire.com: https://www.businesswire.com/news/home/20180918005599/en/
State Street CorporationKerri Doherty, +1
617-664-1898kcdoherty@statestreet.com
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