Investors Can Now Build a Low-Cost Core Portfolio for Even
Less
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced total expense
ratio (“TER”) reductions on 10 funds in its low-cost SPDR Portfolio
ETF suite. These reductions make the funds the lowest or among the
lowest-cost ETF offerings in their respective peer groups.1
Effective August 1 2023, the total expense ratios of the
following funds were lowered as follows:
Ticker
Name
Previous TER (bps)*
New TER
(bps)
SPLG
SPDR Portfolio S&P 500
ETF
3
2
SPMD
SPDR Portfolio S&P 400 Mid
Cap ETF
5
3
SPSM
SPDR Portfolio S&P 600 Small
Cap ETF
5
3
SPDW
SPDR Portfolio Developed World
ex-US ETF
4
3
SPEU
SPDR Portfolio Europe ETF
9
7
SPEM
SPDR Portfolio Emerging Markets
ETF
11
7
SPTS
SPDR Portfolio Short Term
Treasury ETF
6
3
SPTI
SPDR Portfolio Intermediate Term
Treasury ETF
6
3
SPTL
SPDR Portfolio Long Term Treasury
ETF
6
3
SPHY
SPDR Portfolio High Yield Bond
ETF
10
5
Source: State Street Global Advisors, as
of August 1, 2023.
* One basis point (bps) is equal to
one-hundredth of 1 percent, or 0.01%.
“Low-cost ETFs are attractive to buy and hold investors who want
to limit the impact of fees on the long-term performance of their
portfolios,” said Sue Thompson, Head of SPDR Americas Distribution
at State Street Global Advisors. “With 22 funds across a broad
range of asset classes, SPDR Portfolio ETFs are designed to help
investors build resilient and diversified portfolios that allow
them to keep more of what they earn. In fact, in the last two
years, State Street Global Advisors has reduced expense ratios on
20 ETFs across our US line up, demonstrating our commitment to the
democratization of investing by delivering institutional quality
investment solutions at competitive price points.”
With these cuts the median cost of our SPDR Portfolio ETFs are
now 95% less expensive than the median cost of a US-domiciled
mutual fund.2
As the ETF marketplace becomes more competitive, investors are
keeping an eye on cost as an important component of their total
cost of ownership. Our research shows that over the course of a
decade, a portfolio invested at the median cost of US-domiciled
mutual funds would have given up 8.2% of starting principal to
fees.3
“Educating investors and advisors about how ETFs can help to
reduce total cost of ownership is a key focus for State Street
Global Advisors. We are pleased to be able to make investing in
ETFs even more affordable, especially for newer investors who are
just getting started and those using ETFs to build a core
portfolio. We believe that as the core is typically the largest
part of a portfolio, it’s important to use cost-effective solutions
over the long term,” Thompson added.
Launched in 2017, the SPDR Portfolio ETF suite is designed to
provide investors greater choice in low-cost ETFs. The suite
provides exposure to 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 two basis
points. Widely embraced by investors, SPDR Portfolio ETFs have more
than $151 billion in assets.4
As the creator of the world’s first ETFs, SPDR’s innovation in
ETFs is driven by its commitment to delivering low-cost, efficient
solutions for investors and more than 40 years of indexing
experience. SPDR Portfolio ETFs are backed by the same team and
processes that have made SPDR a leader in ETF investing.
Click here for the complete lineup of SPDR Portfolio ETFs.
To learn more about how investors are using low-cost ETFs to
achieve a variety of investment objectives, read Build a Low-Cost
Core Portfolio with SPDR ETFs.
For more information on the SPDR ETF suite, visit
www.ssga.com/etfs.
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. For more information, visit
www.ssga.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 index and
active strategies to create cost-effective solutions. 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 fourth
largest asset manager* with US $3.8 trillion† under our care.
*Pensions & Investments Research
Center, as of 12/31/22.
†This figure is presented as of June 30,
2023 and includes approximately $63 billion USD 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.
Please note all AUM is unaudited.
Footnotes
1 Bloomberg Finance L.P., State Street
Global Advisors as of 8/1/2023.
2State Street Global Advisors per
Morningstar, as of 8/1/2023. Based on Median Prospectus Net Expense
ratio for US domiciled open-end mutual funds across 18 Morningstar
categories representing SPDR Portfolio ETFs.
3 Morningstar, as 05/09/2023. Based on
Median Prospectus Net Expense ratio of 0.82% for US domiciled
mutual funds across 18 Morningstar categories representing SPDR
Portfolio ETFs. Actual fees paid by an investor may vary.
4 Bloomberg Finance L.P., as of
6/30/2023.
Glossary
Basis Point (bps) A unit of measure for interest rates,
investment performance, pricing of investment services and other
percentages in finance. One basis point is equal to one-hundredth
of 1 percent, or 0.01%.
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
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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.
Equity securities may fluctuate in value and can decline
significantly in response to the activities of individual companies
and general market and economic conditions.
While the shares of ETFs are tradable on secondary markets, they
may not readily trade in all market conditions and may trade at
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All information is from SSGA unless otherwise noted and has been
obtained from sources believed to be reliable, but its accuracy is
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current accuracy, reliability or completeness of, nor liability
for, decisions based on such information and it should not be
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Frequent trading of ETFs could significantly increase
commissions and other costs such that they may offset any savings
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Distributors, LLC, member FINRA, SIPC, an indirect wholly owned
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may include State Street Corporation and its affiliates. Certain
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SPDR ETFs.
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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
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© 2023 State Street Corporation. All Rights Reserved.
5630045.1.1.AM.RTL Exp. Date: 08/31/2024
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Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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