State Street Global Advisors Launches Suite of Ultra-Low-Cost SPDR ® Portfolio ETFs

Monday, October 16, 2017 9:00 am EDT

Dateline:

BOSTON

Public Company Information:

NYSE:
STT
US8574771031
"Research has long shown that asset allocation decisions explain over 90 percent of the variance in portfolio returns"

BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), today announced the launch of SPDR Portfolio ETFs, a suite of 15 ultra-low-cost ETFs that provide access to a wide range of equity and fixed income asset classes to help investors meet their goals.

Comprising 15 existing funds, including three that will track new indices, and with over $11B1 in existing assets under management, the SPDR Portfolio ETFs include:

 
New Name and Ticker   New Total Expense Ratio
SPDR Portfolio Total Stock Market ETF (SPTM)   0.03%
SPDR Portfolio Large Cap ETF (SPLG)   0.03%
SPDR Portfolio Mid Cap ETF (SPMD)   0.05%
SPDR Portfolio Small Cap ETF (SPSM)   0.05%
SPDR Portfolio S&P 500® Growth ETF (SPYG)   0.04%
SPDR Portfolio S&P 500 Value ETF (SPYV)   0.04%
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)   0.07%
SPDR Portfolio World ex-US ETF (SPDW)   0.04%
SPDR Portfolio Emerging Markets ETF (SPEM)   0.11%
SPDR Portfolio Aggregate Bond ETF (SPAB)   0.04%
SPDR Portfolio Long Term Corporate Bond ETF (SPLB)   0.07%
SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB)   0.07%
SPDR Portfolio Short Term Corporate Bond ETF (SPSB)   0.07%
SPDR Portfolio Long Term Treasury ETF (SPTL)   0.06%
SPDR Portfolio Short Term Treasury ETF (SPTS)   0.06%
 

“We are truly excited to be able to offer ultra-low-cost ETFs to investors. Since launching SPY nearly 25 years ago, State Street Global Advisors has continually looked for opportunities to help investors build better portfolios with ETFs,” said Nick Good, co-head of the Global SPDR business at SSGA. “Investors have been asking us to provide these solutions to offer them a greater choice for low cost ETFs. The launch of the SPDR Portfolio ETFs provides a solution that meets this growing demand.”

"Each fund in the SPDR Portfolio suite is priced equal to or below the lowest fee ETF in the category," said Rory Tobin, co-head of the Global SPDR business at SSGA. “Some of these changes in price are significant - such as offering Emerging Markets exposure at 11 basis points. In addition, these funds have a combined total of over $11B2 in assets and trade actively, so there is no incubation period needed."

Today's launch of SPDR Portfolio ETFs coincides with the launch of TD Ameritrade’s newly expanded ETF Market Center. The 15 SPDR portfolio ETFs will all be available to purchase commission free on TD Ameritrade’s ETF Market Center.

"TD Ameritrade has been a great collaborator,” said Good. “With their help, and by repurposing existing SPDR ETFs, we have been able to offer investors a very compelling solution for their portfolios."

The suite of SPDR Portfolio ETFs will provide investors access to a broad range of asset classes to assist in the construction of a core portfolio strategy, including fixed income, domestic equity, emerging market and international equity.

“Research has long shown that asset allocation decisions explain over 90 percent of the variance in portfolio returns,” said Matt Bartolini, head of SPDR Americas Research. “Simply put, it all starts with asset allocation. And today’s low return expectations make building an ultra-low-cost, diversified core more important than ever, as costs accumulate over time, eroding a portfolio’s total return.”

SSGA also announced changes to the names and tickers of the 15 ETFs now included in the suite of SPDR Portfolio ETFs. Effective October 16, 2017, the below changes will be made and no action is required by shareholders to effect these changes.

     
Previous Name and Ticker   Previous Total Expense Ratio   New Name and Ticker   New Total Expense Ratio
SPDR Russell 3000® ETF (THRK)   0.10%   SPDR Portfolio Total Stock Market ETF (SPTM)   0.03%
SPDR Russell 1000® ETF (ONEK)   0.10%   SPDR Portfolio Large Cap ETF (SPLG)   0.03%
SPDR S&P 1000® ETF (SMD)   0.10%   SPDR Portfolio Mid Cap ETF (SPMD)   0.05%
SPDR Russell 2000® ETF (TWOK)   0.10%   SPDR Portfolio Small Cap ETF (SPSM)   0.05%
SPDR S&P 500 Growth ETF (SPYG)   0.15%   SPDR Portfolio S&P 500 Growth ETF (SPYG)   0.04%
SPDR S&P 500 Value ETF (SPYV)   0.15%   SPDR Portfolio S&P 500 Value ETF (SPYV)   0.04%
SPDR S&P 500 High Dividend ETF (SPYD)   0.12%   SPDR Portfolio S&P 500 High Dividend ETF (SPYD)   0.07%
SPDR S&P® World ex-US ETF (GWL)   0.34%   SPDR Portfolio World ex-US ETF (SPDW)   0.04%
SPDR S&P Emerging Markets ETF (GMM)   0.59%   SPDR Portfolio Emerging Markets ETF (SPEM)   0.11%
SPDR Bloomberg Barclays Aggregate Bond ETF (BNDS)   0.08%   SPDR Portfolio Aggregate Bond ETF (SPAB)   0.04%
SPDR Bloomberg Barclays Long Term Corporate Bond ETF (LWC)   0.12%   SPDR Portfolio Long Term Corporate Bond ETF (SPLB)   0.07%
SPDR Bloomberg Barclays Intermediate Term Corporate Bond ETF (ITR)   0.12%   SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB)   0.07%
SPDR Bloomberg Barclays Short Term Corporate Bond ETF (SCPB)   0.12%   SPDR Portfolio Short Term Corporate Bond ETF (SPSB)   0.07%
SPDR Bloomberg Barclays Long Term Treasury ETF (TLO)   0.10%   SPDR Portfolio Long Term Treasury ETF (SPTL)   0.06%
SPDR Bloomberg Barclays Short Term Treasury ETF (SST)   0.10%   SPDR Portfolio Short Term Treasury ETF (SPTS)   0.06%
 

Coinciding with the launch of the SPDR Portfolio ETF suite, SSGA is introducing three new proprietary indices to provide investors with diversified exposure to the U.S. large cap market, U.S. small cap market and the total U.S. equity market, encompassing stocks of all market capitalizations. The following index changes are effective November 16, 2017:

   
Fund Name and Ticker   Previous Benchmark Index   New Benchmark Index
SPDR Portfolio Total Stock Market ETF (SPTM)   Russell 3000 Index   SSGA Total Stock Market Index
SPDR Portfolio Large Cap ETF (SPLG)   Russell 1000 Index   SSGA Large Cap Index
SPDR Portfolio Small Cap ETF (SPSM)   Russell 2000 Index   SSGA Small Cap Index
 

SSGA Total Stock Market Index

The SSGA Total Market Index (the “Index”), is designed to measure the performance of the broad market segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the broad market segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

SSGA Large Cap Index

The SSGA Large Cap Index (the “Index”), is designed to measure the performance of the large-capitalization segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index includes the securities of companies whose cumulative total market cap represents approximately the top 90% of the investible universe. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the large-capitalization segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

SSGA Small Cap Index

The SSGA Small Cap Index (the “Index”), is designed to measure the performance of the small-capitalization segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index includes the securities of companies whose cumulative total market cap represents approximately the bottom 10% of the investible universe. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the small-capitalization segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

Definitions:

Float-Adjusted Market Capitalization:

An index methodology that determines the market capitalization of an index based on the shares outstanding of the underlying companies deemed available for purchase in the public equity markets by international investors.

Free-float methodology:

Market capitalization is calculated by taking the equity's price and multiplying it by the number of shares readily available in the market.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely 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 nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide access to markets and asset classes, and allow us to deliver expert insights and investment solutions.

State Street Global Advisors is the investment management arm of State Street Corporation.

* Assets under management were $2.61 trillion as of June 30, 2017. AUM reflects approx. $34 billion (as of June 30, 2017) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

Important Risk Information

ETFs trade like stocks, 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.

Risk associated with equity investing includes stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.

Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.

Investments in small-sized companies may involve greater risks than in those of larger, better known companies. Returns on investments in stocks of small companies could trail the returns on investments in stocks of larger companies.

Foreign investments involve greater risks than US investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.

Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.

Some of the funds may contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; inflation risk; and issuer call risk.

Returns on investments in stocks of large US companies could trail the returns on investments in stocks of smaller and mid-sized companies.

The values of debt securities may decrease as a result of many factors, including, by way of example, general market fluctuations; increases in interest rates; actual or perceived inability or unwillingness of issuers, guarantors or liquidity providers to make scheduled principal or interest payments; illiquidity in debt securities markets; and prepayments of principal, which often must be reinvested in obligations paying interest at lower rates.

Passively managed funds invest by sampling the index, holding 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.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

State Street Global Advisors and SSGA are registered trademarks of State Street Corporation.

Standard & Poor’s®, S&P® and SPDR® 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 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, an indirect 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 fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information on SPDR ETFs, call 866.787.2257 or visit spdrs.com. Read it carefully.

Not FDIC Insured • No Bank Guarantee • May Lose Value

CORP-3356

1 Bloomberg as of 9/29/17

2 Bloomberg as of 9/29/17

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State Street Corporation
Andrew Hopkins, +1 617-664-2422
Ahopkins2@StateStreet.com

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