State Street Global Advisors (SSgA), the asset management arm of State
Street Corporation (NYSE:STT) today announced the launch of a suite of
advanced beta SPDR ETFs that seek to combine the performance of quality,
value and low volatility strategies to provide investors the potential
diversification benefits of a multi-factor approach in an objective,
transparent and consistent manner.
The nine new ETFs, which are all trading on the NYSE Arca as of June 12,
2014, include:
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SPDR MSCI World Quality Mix ETF (Symbol: QWLD)
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SPDR MSCI EAFE Quality Mix ETF (QEFA)
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SPDR MSCI Emerging Markets Quality Mix ETF (QEMM)
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SPDR MSCI Australia Quality Mix ETF (QAUS)
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SPDR MSCI Canada Quality Mix ETF (QCAN)
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SPDR MSCI Germany Quality Mix ETF (QDEU)
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SPDR MSCI Japan Quality Mix ETF (QJPN)
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SPDR MSCI Spain Quality Mix ETF (QESP)
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SPDR MSCI United Kingdom Quality Mix ETF (QGBR)
“Advanced beta strategies are a valuable tool in today’s market as they
blend both passive and active investment styles,” said James Ross,
executive vice president and global head of SPDR Exchange Traded Funds
at State Street Global Advisors. “Our new SPDR MSCI Quality Mix ETFs use
multi-factor strategies constructed by combining three MSCI Factor
Indices with different risk-return profiles and correlations. The
concept of multi-factor holds appeal with a majority of investors as an
opportunity to manage risk through combined factor tilts and potentially
enhance the resilience of their portfolio through strategic exposure.”
Advanced beta, also known as alternative or smart beta, refers to a set
of approaches that deviate from the traditional cap-weighted model and
instead weight indices or securities based on alternative rules-based
methodologies. According to a recent SSgA study titled, Beyond Active
and Passive, Advanced Beta Comes of Age1, 65 percent of
institutional investors from North America and Europe are planning to
adopt multi-factor advanced beta strategies, and nearly 70 percent agree
that combining several targeted market exposures as part of an advanced
beta offering makes for a more refined product.
“The ability to combine factors opens up new opportunities for investors
and is growing in popularity for its diversification benefits,” said
Diana Tidd, managing director and head of the MSCI Index Business in the
Americas. “The MSCI Quality Mix Indexes are another example of our
ability to deliver innovative index tools that meet the increasingly
sophisticated needs of clients. We look forward to continuing to work
with State Street as they expand their SPDR MSCI Quality Mix-based ETF
offering."
Designed to represent the performance of quality, value and low
volatility factor strategies across global markets in a single composite
index, the MSCI Quality Mix Indexes are an equal weighted combination of
the MSCI Value Weighted, MSCI Minimum Volatility and MSCI Quality
Indexes.
All nine SPDR MSCI Quality Mix ETFs feature an expense ratio of 0.30
percent.
For more information on these innovative advanced beta SPDR ETFs and the
MSCI Quality Mix Index methodology, visit spdrs.com.
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 Bank and Trust Company. 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
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors worldwide
for its disciplined investment process, powerful global investment
platform and access to every major asset class, capitalization range and
style. SSgA is the asset management business of State Street
Corporation, one of the world’s leading providers of financial services
to institutional investors.
1State Street Global Advisors commissioned Longitude Research
to conduct a survey of 300 institutional investors including public and
private pension funds, endowments, foundations, insurance companies and
private banks. Respondents were from North America and Europe and
represent institutions with more than $1 billion in assets. In addition
to the survey, a series of in-depth interviews with senior professionals
in the institutional investor community also occurred.
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 or visit www.spdrs.com.
Read it carefully.
The Fund invests 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.
Risk associated with equity investing include stock values which may
fluctuate in response to the activities of individual companies and
general market and economic conditions.
Foreign investments involve greater risks than U.S. investments,
including political and economic risks and the risk of currency
fluctuations, all of which may be magnified in emerging markets.
Derivative investments may involve risks such as potential illiquidity
of the markets and additional risk of loss of principal.
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.
The MSCI EAFE Quality Mix Index, MSCI Emerging Markets Quality Mix
Index, and the MSCI World Quality Mix Index are trademarks of Morgan
Stanley Capital International. The financial products described herein
are indexed to an MSCI index. The financial products referred to herein
are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no
liability with respect to any such financial products or any index which
such financial products are based.
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