State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced expense ratio
reductions for the SPDR Portfolio Mortgage Backed Bond ETF (SPMB)
and SPDR Portfolio High Yield Bond ETF (SPHY).
“We are always reviewing our low-cost suite of SPDR Portfolio
ETFs for opportunities to reduce the total cost of ownership for
investors,” said Noel Archard, global head of SPDR Product at State
Street Global Advisors. “Designed to help clients build a strong,
low cost core, SPDR Portfolio ETFs have attracted more than $65
billion of asset flows since debuting less than four years ago1,
which is a testament to the suite’s compelling value.”
With today’s expense ratio reductions, SPMB and SPHY are the
lowest cost mortgage-backed and high yield bond ETF offerings,
respectively.2
Effective March 24, 2021, the expense ratios of the two funds
will be lowered as follows:
Fund Name
Ticker
Previous Net Expense
Ratio
New Net Expense Ratio
SPDR Portfolio Mortgage Backed Bond
ETF
SPMB
0.06%
0.04%3
SPDR Portfolio High Yield Bond ETF
SPHY
0.15%
0.10%
Source: State Street Global Advisors, as of
03/24/2021.
Launched in 2017, the SPDR Portfolio ETF suite is designed to
provide investors greater choice in low-cost ETFs. The suite
includes 22 SPDR ETFs spanning US equity, international equity and
fixed income asset classes to help investors build a diversified
core portfolio of stocks and bonds with ETFs priced as low as three
basis points. Widely embraced by investors, SPDR Portfolio ETFs
have more than $92 billion of assets.1
For more information on SPDR Portfolio ETFs, visit
www.ssga.com/low-cost-etfs.
1 Source: Bloomberg Finance L.P. as of March 12, 2021.
2 Source: Bloomberg Finance L.P. as of March 24, 2021.
3 The gross expense ratio for SPMB is 0.06%. 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. SSGA Funds Management, Inc.
(the “Adviser”) has contractually agreed to waive a portion of its
management fee and/or reimburse expenses in an amount equal to any
acquired fund fees and expenses (excluding holdings in acquired
funds for cash management purposes, if any) until October 31, 2021.
This waiver and/or reimbursement does not provide for the
recoupment by the Adviser of any amounts waived or reimbursed. The
Adviser may continue the waiver and/or reimbursement from year to
year, but there is no guarantee that the Adviser will do so and the
waiver and/or reimbursement may be cancelled or modified at any
time after October 31, 2021. This waiver and/or reimbursement may
not be terminated prior to October 31, 2021 except with the
approval of the Fund’s Board of Trustees.
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. For more information, visit
www.ssga.com/etfs.
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 $3.47 trillion* under
our care.
*This figure is presented as of December 31, 2020 and includes
approximately $75.17 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
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investor's particular investment objectives,
strategies, tax status or investment horizon.
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.
Investing involves risk, including the risk of loss of
principal.
This communication is not intended to be an investment
recommendation or investment advice and should not be relied upon
as such.
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.
Investments in mortgage securities are subject to
prepayment risk, which can limit the potential for gain during a
declining interest rate environment and increase the potential for
loss in a rising interest rate environment. The mortgage industry
can also be significantly affected by regulatory changes, interest
rate movements, home mortgage demand, refinancing activity, and
residential delinquency trends.
Investing in high yield fixed income securities,
otherwise known as “junk bonds”, is considered speculative and
involves greater risk of loss of principal and interest than
investing in investment grade fixed income securities. These
Lower-quality debt securities involve greater risk of default or
price changes due to potential changes in the credit quality of the
issuer.
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.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, State Street Global
Advisors, One Iron Street, Boston, MA 02210.
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 ssga.com.com. Read it carefully.
© 2021 State Street Corporation.
All Rights Reserved.
3484629.1.1.AM.RTL Exp. Date: 03/31/2022
Not FDIC Insured · No Bank Guarantee · May Lose Value
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Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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