State Street Global Advisors Launches S&P 500 ESG ETF

Newest SPDR ETF Offers Investors An ESG Alternative for Flagship Equity Benchmark

Tuesday, July 28, 2020 8:30 am EDT

Dateline:

BOSTON

Public Company Information:

NYSE:
STT
US8574771031
"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"

BOSTON--(BUSINESS WIRE)--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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Contact:

Deborah Heindel
+1 617 662 9927
DHEINDEL@StateStreet.com

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