Newest SPDR ETF Offers Investors An ESG Alternative for
Flagship Equity Benchmark
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the SPDR® S&P 500 ESG ETF (EFIV). Providing investors an
opportunity to tap into ESG investing at the core of their
portfolio with an expense ratio of just 10 basis points, EFIV
enhances both SPDR’s ESG and S&P 500 ETF offerings, seeking to
help investors incorporate ESG while achieving a risk and return
profile comparable to the S&P 500. EFIV seeks to track the
S&P 500 ESG Index (the “Index”), which is designed to measure
the performance of securities meeting certain sustainability
criteria (i.e., criteria related to environmental, social and
governance factors), while maintaining a similar overall industry
group weight as the S&P 500 Index.
“ESG investing is approaching a critical inflection point. The
collective call for change is growing louder and investors are
increasingly taking a stand through their investment choices,” said
Sue Thompson, Head of SPDR Americas Distribution at State Street
Global Advisors. “EFIV meets growing demand for cost effective
solutions that help put ESG investing into action by offering
investors an ETF that seeks to track a more sustainable version of
one of the most renowned benchmarks in the world. As ESG
factor-based strategies pivot from check the box components to must
have ingredients in every portfolio, State Street remains committed
to providing a broader range of ESG solutions.”
“S&P Dow Jones Indices (S&P DJI) has a longstanding
relationship with State Street’s SPDR business that dates back more
than 27 years, and we’re excited to expand this ongoing
collaboration today,” added Dan Draper, Chief Executive Officer at
S&P DJI. “We’re delighted that State Street has licensed the
S&P 500 ESG Index for its new fund, incorporating ESG factors
into the core S&P 500 benchmark, which is widely regarded as
the best single gauge of large-cap U.S. equities.”
With over $11 trillion indexed or benchmarked to the S&P
500, the index is one of the most closely followed equity
barometers in the world. Comprised of 500 companies in leading
industries and covering approximately 80% of available market
capitalization in the U.S., the S&P 500 is the benchmark of
choice for countless investors seeking broad, diversified exposure
to large-cap U.S. equities. All constituents of the S&P 500 are
eligible for inclusion in the Index, except for companies that:
- Are involved with tobacco-related products and services, based
on certain levels of production, revenue or ownership;
- Are involved in controversial weapons, including cluster
weapons, landmines, biological or chemical weapons, depleted
uranium weapons, white phosphorus weapons, or nuclear weapons, or
hold certain ownership stakes in a company involved in these
activities;
- Have a United Nations Global Compact (“UNGC”) score in the
bottom 5% of all UNGC-scored companies globally;
- Have an S&P DJI ESG Score that falls within the worst 25%
from each Global Industry Classification Standard (GICS) industry
group;
- Do not have (i) coverage for tobacco- and controversial
weapons-related involvement from the Index’s third-party data
providers for such information; (ii) a UNGC score determined by
Arabesque; or (iii) an S&P DJI ESG Score.
State Street Global Advisors remains committed to helping the
world’s governments, institutions and financial advisors reach
their ESG investing goals. We began managing our first ESG
portfolio more than 35 years ago and today manage $286 billion in
ESG assets on behalf of our global clients. As stewards of our
clients’ capital, we help investors see that what is fair for
people and sustainable for the planet can deliver long-term
performance.
For more information on the SPDR ETF suite, visit
www.spdrs.com.
About S&P
The "S&P 500 ESG Index" is a product of S&P Dow Jones
Indices LLC or its affiliates (“SPDJI”) and has been licensed for
use by State Street Global Advisors (“SSGA”). S&P® and S&P
500® are registered trademarks of Standard & Poor’s Financial
Services LLC (“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 SPDJI and sublicensed for
certain purposes by SSGA. SSGA’s SPDR S&P 500 ESG ETF is
not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones,
S&P, their respective affiliates, and none of such parties make
any representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors,
omissions, or interruptions of the S&P 500 ESG Index.
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 (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 US $3.05 trillion* under
our care.
*This figure is presented as of June 30, 2020 and includes
approximately $69.52 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
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.
ESG considerations may cause a fund to make different
investment decisions than funds that do not incorporate such
considerations in their strategy or investment processes. This
could cause the Fund's investment performance to be worse than
funds that do not incorporate such considerations. ESG
considerations also may affect a fund’s exposure to certain sectors
and/or types of investments, and may adversely impact the Fund's
performance depending on whether such sectors or investments are in
or out of favor in the market.
Equity securities may fluctuate in value in response to
the activities of individual companies and general market and
economic conditions.
Non-diversified fund may invest in a relatively small
number of issuers, a decline in the market value may affect its
value more than if it invested in a larger number of issuers. While
the Fund is expected to operate as a diversified fund, it may
become non-diversified for periods of time solely as a result of
changes in the composition of its benchmark index.
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.
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.
Not FDIC Insured • No Bank Guarantee • May Lose Value
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version on businesswire.com: https://www.businesswire.com/news/home/20200728005536/en/
Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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