State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT) and the World Gold Council,
the market development organization for the gold industry, this
week celebrates the anniversary of the first US exchange traded
fund (ETF) backed entirely by physical gold, SPDR® Gold Shares
(Symbol: GLD®).
Launched on November 18, 2004, GLD was a product innovation that
solved an immediate investor need for a relatively liquid vehicle
to access gold and surpassed $1 billion in assets within its first
three trading days. Today, GLD is the world’s largest and most
liquid gold-backed ETF with more than $40 billion in assets and
$1.7 billion in daily trading volume1.
“GLD’s launch democratized gold investing by revolutionizing how
investors could access gold, bringing greater transparency and
liquidity to implementing a gold allocation within portfolios,”
said Matthew Bartolini, head of SPDR Americas Research at State
Street Global Advisors. “Since launching, investors have relied on
GLD to seek to benefit from gold’s historical ability to diversify
portfolios2 and deliver positive returns in periods of US equity
market downturns.3”
“We are proud to have set the ‘gold-standard’ with GLD,” said
Joe Cavatoni, Managing Director USA, World Gold Council. “We look
forward to continuing to deliver operational excellence for our
gold-backed funds while identifying opportunities to drive
continued innovation in the gold market to meet evolving investor
needs.”
In June of 2018, the World Gold Council and State Street Global
Advisors launched the SPDR® Gold Mini Shares (GLDMSM) to meet
demand from investors who place a greater emphasis on a lower share
price and expense ratio. GLDM has since surpassed $1 billion in
assets and has become the fastest growing low-cost gold ETF in the
market.4
The World Gold Council serves as the sponsor for GLD and GLDM;
State Street Global Advisors serves as the marketing agent.
For more information on the gold market environment and how SPDR
gold ETFs fit within an investor’s portfolio, please visit
www.spdrs.com/gold.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. The funds provide
investors with the flexibility to select investments that are
aligned to their investment strategy. Recognized as an industry
pioneer, State Street created the first US listed ETF in 1993 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 $2.95 trillion*
under our care.
* This figure is presented as of September 30, 2019 and includes
approximately $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.
About The World Gold Council
The World Gold Council is the market development organisation
for the gold industry. Our purpose is to be the global authority on
the gold market, provide industry leadership, and stimulate and
sustain demand for gold.
We develop gold-backed solutions, services and products, based
on authoritative market insight and we work with a range of
partners to put our ideas into action. We provide insights into the
international gold markets, helping people to understand the wealth
preservation qualities of gold and its role in meeting the social
and environmental needs of society.
The membership of the World Gold Council includes the world’s
leading and most forward thinking gold mining companies. For more
information, please visit gold.org.
1Source: as of 10/23/2019 per Bloomberg Finance L.P.; Average
trading volume in 2019, year to date.
2Source: Bloomberg Finance, L.P., & State Street Global
Advisors; Notes: LBMA Gold Price PM (USD/oz) monthly correlation to
S&P 500 Index and Bloomberg Barclays US Aggregate Bond Index is
0.03 and 0.34, respectively, from 11/30/2004 to 09/30/2019. The
correlation coefficient measures the strength and direction of a
linear relationship between two variables. It measures the degree
to which the deviations of one variable from its mean are related
to those of a different variable from its respective mean with 0
being uncorrelated and 1 being perfectly correlated.
3Source: Bloomberg Finance, L.P., State Street Global Advisors,
as of September 30, 2019. Performance of the spot price of gold and
the S&P 500 Index during certain recent US equity market
downturns are as follows 2008 Financial Crisis (06/05/08 –
03/09/09): Spot Price of Gold (USD/oz) +5.1% & S&P 500
Index TR -50.8%; Black Monday (08/25/87 – 12/04/87) : Spot Price of
Gold (USD/oz) +8.4% & S&P 500 Index TR -32.8%; 2002
Recession (03/19/02 – 07/23/02) : Spot Price of Gold (USD/oz) +6.8%
& S&P 500 Index TR -31.5%; Dot Com Bubble (09/29/00 –
04/04/01) : Spot Price of Gold (USD/oz) -5.8% & S&P 500
Index TR -22.7%; Gulf War (07/16/90 – 10/11/90) : Spot Price of
Gold (USD/oz) +6.8 & S&P 500 Index TR -19.2% ;LTCM &
Asian Crisis (07/17/98 – 08/31/98) : Spot Price of Gold (USD/oz)
-6.4% & S&P 500 Index TR -19.2% ;US Credit Downgrade
(07/07/11 – 10/03/11) : Spot Price of Gold (USD/oz) +8.2% &
S&P 500 Index TR -18.4% ; Subprime Meltdown (10/09/07 –
03/10/08) : Spot Price of Gold (USD/oz) +31.8% & S&P 500
Index TR -17.9%; ; September 11th (08/24/01 – 09/21/01) : Spot
Price of Gold (USD/oz) +6.8% & S&P 500 Index TR -18.4% ;
Flash Crash(04/23/10 – 07/02/10) : Spot Price of Gold (USD/oz)
+4.7% & S&P 500 Index TR -15.6% ; Trade War/Recession Fears
(09/21/18 – 12/26/18) : Spot Price of Gold (USD/oz) +5.7% &
S&P 500 Index TR -15.3%
4Source: as of 10/23/2019 per Bloomberg Finance L.P. GLDM has
seen the strongest growth in assets and shares outstanding among
low expense ratio gold ETFs since GLDM's inception. *Low-Expense
Ratio Gold ETFs defined as funds with annual expense ratios less
than 0.20% and assets under management over US$250 million as of
9/18/19 that trade in the US.
Important risk information
Investing involves risk, and you could lose money on an
investment in each of SPDR® Gold Shares Trust (“GLD®”) and SPDR®
Gold MiniSharesSM Trust (“GLDMSM”), a series of the World Gold
Trust (together, the “Funds”).
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.
Commodities and commodity-index linked securities may be
affected by changes in overall market movements, changes in
interest rates, and other factors such as weather, disease,
embargoes, or political and regulatory developments, as well as
trading activity of speculators and arbitrageurs in the underlying
commodities.
Frequent trading of ETFs could significantly increase
commissions and other costs such that they may offset any savings
from low fees or costs.
Diversification does not ensure a profit or guarantee against
loss.
Investing in commodities entails significant risk and is not
appropriate for all investors.
Important Information Relating to SPDR® Gold Trust (“GLD®”)
and SPDR® Gold MiniSharesSM Trust (“GLDMSM”):
The SPDR Gold Trust (“GLD”) and the World Gold Trust have
each filed a registration statement (including a prospectus) with
the Securities and Exchange Commission (“SEC”) for GLD and GLDM,
respectively. Before you invest, you should read the prospectus in
the registration statement and other documents each Fund has filed
with the SEC for more complete information about each Fund and
these offerings. Please see each Fund’s prospectus for a detailed
discussion of the risks of investing in each Fund’s shares. The GLD
prospectus is available by clicking here, and the GLDM prospectus
is available by clicking here. You may get these documents for free
by visiting EDGAR on the SEC website at sec.gov or by visiting
spdrgoldshares.com. Alternatively, the Funds or any authorized
participant will arrange to send you the prospectus if you request
it by calling 866.320.4053.
None of the Funds is an investment company registered under the
Investment Company Act of 1940 (the “1940 Act”). As a result,
shareholders of each Fund do not have the protections associated
with ownership of shares in an investment company registered under
the 1940 Act. GLD and GLDM are not subject to regulation under the
Commodity Exchange Act of 1936 (the “CEA”). As a result,
shareholders of each of GLD and GLDM do not have the protections
afforded by the CEA.
Shares of each Fund trade like stocks, are subject to investment
risk and will fluctuate in market value.
The values of GLD shares and GLDM shares relate directly to the
value of the gold held by each Fund (less its expenses),
respectively. Fluctuations in the price of gold could materially
and adversely affect an investment in the shares. The price
received upon the sale of the shares, which trade at market price,
may be more or less than the value of the gold represented by
them.
None of the Funds generate any income, and as each Fund
regularly sells gold to pay for its ongoing expenses, the amount of
gold represented by each Fund share will decline over time to that
extent.
The World Gold Council name and logo are a registered trademark
and used with the permission of the World Gold Council pursuant to
a license agreement. The World Gold Council is not responsible for
the content of, and is not liable for the use of or reliance on,
this material. World Gold Council is an affiliate of the Sponsor of
each of GLD and GLDM.
GLD® is a registered trademark of World Gold Trust Services, LLC
used with the permission of World Gold Trust Services, LLC.
MiniSharesSM and GLDMSM are service marks of WGC USA Asset
Management Company, LLC used with the permission of WGC USA Asset
Management Company, LLC.
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 makes any representation regarding the
advisability of investing in such product(s) nor do they have any
liability in relation thereto.
For more information, please contact the Marketing Agent for
GLD and GLDM: State Street Global Advisors Funds Distributors, LLC,
One Iron Street, Boston, MA, 02210;
T: +1 866 320 4053 spdrgoldshares.com
© 2019 State Street Corporation. All Rights Reserved.
State Street Global Advisors Funds Distributors, LLC, One Iron
Street, Boston, MA 02210
Not FDIC Insured - No Bank Guarantee - May Lose Value
2821827.1.1.AM.RTL
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version on businesswire.com: https://www.businesswire.com/news/home/20191118005142/en/
Olivia Offner +1 617.662.0198 ooffner@statestreet.com
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