State Street Global Advisors Announces Reverse Splits of Two ETFs
March 23 2020 - 4:57PM
Business Wire
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced reverse
splits will be implemented for the SPDR S&P Oil & Gas
Equipment & Services ETF (XES) and the SPDR S&P Oil &
Gas Exploration & Production ETF (XOP) in order to potentially
reduce trading costs for investors. Shares of both funds will trade
at their post-reverse split price effective as of March 30,
2020.
The total net asset value of each of XOP and XES is not affected
by the splits detailed below.
Fund Name
Ticker
Reverse Split Ratio
SPDR S&P Oil & Gas Equipment &
Services ETF
XES
1:10
SPDR S&P Oil & Gas Exploration
& Production ETF
XOP
1:4
“Our sector and industry SPDR ETFs are among the most heavily
traded and widely used suite, allowing investors to gain targeted
exposure while efficiently managing their total cost of ownership,”
said Noel Archard, global head of SPDR product. “The reverse stock
splits for XES and XOP are designed to increase the funds’ price
per share and improve investors’ experience through our focus on
the total cost of ownership, part of which is aided by maintaining
a targeted price per share. With these changes, we look to help to
reduce trading costs for investors seeking liquid access to these
sub sectors of the oil industry.”
As a result of the reverse stock splits, shareholders of XES and
XOP will typically receive cash in lieu of fractional shares.
Certain shareholders, however, may have the potential to hold
fractional shares; the treatment of those shares will be dependent
upon each shareholder’s custodial relationship.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are sponsored
by affiliates of State Street Global Advisors. 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 $3.12 trillion*
under our care.
* This figure is presented as of December 31, 2019 and includes
approximately $45 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 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.
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 share to
decrease.
Equity Securities may fluctuate in value in response to the
activities of individual companies and general market and economic
conditions.
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 which contains
this and other information, call 1-866-787-2257 or visit
www.spdrs.com. Read it carefully.
Not FDIC Insured • No Bank Guarantee • May Lose Value
3006886.1.1.AM.RTL
Expiration date:
03/31/2021
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Deborah Heindel +1 617.662.9927 dheindel@statestreet.com
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