New Active SPDR ETFs Focus on Delivering Alpha in Equity and
Fixed Income Sectors
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
two actively-managed, sector rotation SPDR ETFs with tactical
allocation strategies. The SPDR SSGA US Sector Rotation ETF (XLSR)
and SPDR SSGA Fixed Income Sector Rotation ETF (FISR) are managed
by the firm’s Investment Solutions Group (ISG). ISG is comprised of
more than 75 strategists, analysts and portfolio managers
overseeing more than $266 billion in assets for investors including
the world’s leading central banks, sovereign wealth funds and
pension funds.1
“These two new active ETFs highlight three key qualities of
State Street Global Advisors - the power of ISG’s sophisticated
tactical asset allocation, the world’s largest and most liquid
suite of equity sector ETFs, and our experience in managing over
$400 billion in fixed income assets2,” says Noel Archard, Global
Head of SPDR Product at State Street Global Advisors. “In bringing
these attributes to a wider audience through our SPDR ETF family,
we are providing clients with alpha-seeking solutions to enhance
core portfolios.”
The SPDR SSGA US Sector Rotation ETF seeks to provide capital
appreciation by overweighting or underweighting S&P 500 Sector
ETFs based on ISG’s sector return forecasts and research, which
includes a proprietary, quantitative sector selection model. ISG
uses the model results and applies qualitative judgment to
construct a portfolio of sector ETFs that seeks to maximize returns
while meeting risk targets.
The SPDR SSGA Fixed Income Sector Rotation ETF seeks to provide
total return by tactically allocating across income and
yield-generating ETFs across the fixed income spectrum. FISR uses a
tactical investment strategy based on ISG’s Fixed Income Sector
Rotation Model, followed by fundamental review by the portfolio
management team. The model provides views on the direction of rates
and spreads across the maturity and credit quality spectrums.
“Sectors have long demonstrated consistent sensitivity to
economic and interest rate cycles,” says Dan Farley, CIO of State
Street Global Advisors’ Investment Solutions Group. “Our sector
selection models provide a unique opportunity to generate
meaningful active performance for clients in varying market
conditions.”
1 As of December 31, 2018. Assets Under Advisory/Consulting of
$21.22B includes mandates for which the firm provides advisory or
consulting services supporting an investment management process
that does not include the responsibility to arrange or effect the
purchase or sale of securities and/or funds. In 2015, ISG revised
the AUM and AUAC calculation methodology and account categorization
process.
2 As of December 31, 2018.
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 $2.51 trillion*
under our care.
* This figure is presented as of December 31, 2018 and includes
approximately $32.44 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.
Important Risk Information
Investing involves risk, including the risk of loss of
principal.
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.
Actively managed ETFs do not seek to replicate the performance
of a specified index. Because the SPDR SSGA Active Asset Allocation
ETFs are actively managed, they are therefore subject to the risk
that the investments selected by SSGA may cause the ETFs to
underperform relative to their benchmarks or other funds with
similar investment objectives.
State Street Global Advisors and its affiliates (“SSGA”) have
not taken into consideration the circumstances of any particular
investor in producing this material and are not making an
investment recommendation or acting in fiduciary capacity in
connection with the provision of the information contained
herein.
XLSR and FISR are offered to US Investors only and
distributed by State Street Global Advisors Funds Distributors LLC
member FINRA SIPC.
Standard & Poor’s, S&P and SPDR are registered
trademarks of Standard & Poor’s Financial Services LLC, a
division of S&P Global (“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.
State Street Global Advisors Funds Distributors, LLC, member
FINRA, SIPC
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
866.787.2257 or visit spdrs.com. Read it carefully.
Some of the products are not available to investors in
certain jurisdictions. Please contact your relationship manager in
regards to availability.
Concentrated investments in a particular sector or industry tend
to be more volatile than the overall market and increases risk that
events negatively affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund’s shares to
decrease.
The whole or any part of this work may not be reproduced, copied
or transmitted or any of its contents disclosed to third parties
without SSGA’s express written consent.
© 2019 State Street Corporation - All Rights Reserved
Expiration Date: 3/31/2020
Not FDIC Insured • No Bank Guarantee • May Lose Value
2476337.1.1.GBL.RT
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Olivia Offner+1 617.662.0198ooffner@statestreet.com
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