State Street Global Advisors (SSGA), the asset management arm of State
Street Corporation (NYSE:STT) today announced the launch of three
single-country advanced beta SPDR ETFs. These ETFs aim to represent the
performance of a combination of three factors, quality, value and low
volatility, with the objective of giving investors improved
risk-adjusted return potential when investing in single-country markets.
The new ETFs add to the existing nine multi-factor SPDR MSCI Quality Mix
ETFs that were launched in June 2014.
The three new ETFs, which began trading on the NYSE Arca as of September
18, 2014, include:
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SPDR MSCI Mexico Quality Mix ETF (QMEX)
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SPDR MSCI South Korea Quality Mix ETF (QKOR)
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SPDR MSCI Taiwan Quality Mix ETF (QTWN)
“Our new SPDR MSCI Quality Mix ETFs provide investors with an
opportunity to fine-tune their international exposure with a
single-country portfolio that captures multiple investment themes,” said
James Ross, executive vice president and global head of SPDR Exchange
Traded Funds at State Street Global Advisors. “Multi-factor advanced
beta strategies combine factor tilts that can help achieve
diversification by using factors that have shown negative or low
correlation. These exposures are appealing to investors as they can
behave differently in similar market environments in terms of risk and
return.”
Investors may look to each of the recently launched Quality Mix ETFs to
add strategic elements to their core portfolio. The selection of
exposures available range from international with the SPDR MSCI EAFE
Quality Mix ETF (QEFA), which includes 22 markets in Europe, Australaisa
and Far East countries, to emerging markets, with the SPDR MSCI Emerging
Markets Quality Mix ETF (QEMM), which captures large- and mid-cap
representation across 21 emerging markets countries and global with the
SPDR MSCI World Quality Mix ETF (QWLD). Additional country specific
funds include Australia (QAUS), Canada (QCAN), Germany (QDEU), Japan
(QJPN), Spain (QESP) and the United Kingdom (QGBR). The funds give
investors opportunities to consider access to precise multi-factor
investment across markets.
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. 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 A-Series Indexes are an equal
weighted combination of the MSCI Value Weighted, MSCI Minimum Volatility
and MSCI Quality Indexes. The MSCI Minimum Volatility Index may be
replaced with its corresponding MSCI Risk Weighted Index in the event
that there is too much concentration or too few stocks in the index.
The three new SPDR MSCI Quality Mix ETFs feature an expense ratio of
0.40 percent.
For more information on these innovative advanced beta SPDR ETFs and the
MSCI Quality Mix A-Series Index methodology, visit www.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.
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. Investors may acquire ETFs and
tender them for redemption through the Fund in Creation Unit
Aggregations only. Please see the prospectus for more details.
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.
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.
A "value" style of investing emphasizes undervalued companies with
characteristics for improved valuations. This style of investing is
subject to the risk that the valuations never improve or that the
returns on "value" equity securities are less than returns on other
styles of investing or the overall stock market.
Although subject to the risks of common stocks, low volatility stocks
are seen as having a lower risk profile than the overall markets.
However, a fund that invests in low volatility stocks may not produce
investment exposure that has lower variability to changes in such
stocks' price levels.
A "quality" style of investing emphasizes companies with high returns,
stable earnings, and low financial leverage. This style of investing is
subject to the risk that the past performance of these companies does
not continue or that the returns on "quality" equity securities are less
than returns on other styles of investing or the overall stock market.
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.
Investments in small/mid-sized companies may involve greater risks than
in those of larger, better known companies.
Companies with large market capitalizations go in and out of favor based
on market and economic conditions. Larger companies tend to be less
volatile than companies with smaller market capitalizations. In exchange
for this potentially lower risk, the value of the security may not rise
as much as companies with smaller market capitalizations.
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.
"SPDR" is a registered trademark of Standard & Poor’s Financial Services
LLC ("S&P") and has been licensed for use by State Street Corporation.
No financial product offered by State Street Corporation or its
affiliates is sponsored, endorsed, sold or promoted by S&P or its
Affiliates, and S&P and its affiliates make no representation, warranty
or condition regarding the advisability of buying, selling or holding
units/shares in such products. Further limitations and important
information that could affect investors' rights are described in the
prospectus for the applicable product.
Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a
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 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.
CORP-1097
Copyright Business Wire 2014