HREX and HDWX Provide Ability to Manage the Currency Risk of
International Income Producing Asset Classes
State Street Global Advisors (SSGA), the asset management business of
State Street Corporation (NYSE:STT), today announced the SPDR MSCI
International Real Estate Currency Hedged ETF (HREX) and the SPDR S&P
International Dividend Currency Hedged ETF (HDWX) began trading on the
NYSE Arca. HREX and HDWX join SSGA’s first currency hedged ETF - the
SPDR EURO STOXX 50 Currency Hedged ETF (HFEZ) - which launched in June
2015.
“Recent flow trends have highlighted continued investor interest in
currency hedged ETFs to help manage currency volatility,” said James
Ross, executive vice president and global head of SPDR Exchange Traded
Funds at State Street Global Advisors. “The search for yield continues
to be a pressing need for investors and the addition of HREX and HDWX
provides our clients with the ability to better manage currency risk
when seeking attractive income-producing opportunities outside of the
US.”
The SPDR MSCI International Real Estate Currency Hedged ETF seeks to
track the performance of the MSCI World ex USA IMI Core Real Estate
Capped 100% Hedged to USD Index. This index is designed to reflect the
performance of stocks in the MSCI World ex USA IMI Index that are
engaged in the ownership, development and management of specific core
real estate property types while minimizing exposure to fluctuations in
foreign currencies. The SPDR MSCI International Real Estate Currency
Hedged ETF’s gross expense ratio is 0.48 percent.
The SPDR S&P International Dividend Currency Hedged ETF seeks to track
the performance of the S&P International Dividend Opportunities USD
Hedged Index. This index is designed to represent the performance of the
100 highest dividend-yielding common stocks and ADRs listed in primary
exchanges of countries included in the S&P Global BMI ex US (Broad
Market Index) while minimizing exposure to fluctuations in foreign
currencies. The SPDR S&P International Dividend Currency Hedged ETF has
a net expense ratio to the investors of 0.48 percent. As a result of the
acquired fund fees from holding the SPDR S&P International Dividend ETF
(DWX), the gross expense ratio is 0.93 percent.
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
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 unrivaled 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 $2.4 trillion as of June 30, 2015.
Assets under management include approximately $26.7 billion (as of June
30, 2015), for which State Street Global Markets, LLC, an affiliate of
SSgA, serves as the distribution agent.
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.
Currency Hedging involves taking offsetting positions intended to
substantially offset currency losses on the hedged instrument. If the
hedging position behaves differently than expected, the volatility of
the strategy as a whole may increase and even exceed the volatility of
the asset being hedged. There can be no assurance that the Fund's
hedging strategies will be effective.
Derivative investments may involve risks such as potential illiquidity
of the markets and additional risk of loss of principal.
Foreign (non-U.S.) Securities may be subject to greater political,
economic, environmental, credit and information risks. Foreign
securities may be subject to higher volatility than U.S. securities, due
to varying degrees of regulation and limited liquidity. These risks are
magnified in emerging markets.
Non-diversified funds invest a greater portion of assets in fewer
securities and therefore may be more vulnerable to adverse changes in
the market.
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.
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.
Equity securities are volatile and can decline significantly in response
to broad market and economic conditions.
Real Estate Investment Trusts (REITS) investing may be subject to risks
including, but not limited to, declines in the value of real estate,
risks related to general economic conditions, changes in the value of
the underlying property owned by the trust and defaults by borrowers.
Investing involves risk including the risk of loss of principal.
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 1-866-787-2257, download a
prospectus or summary prospectus now, or talk to your financial advisor.
Read it carefully before investing.
CORP-1582
View source version on businesswire.com: http://www.businesswire.com/news/home/20150915006685/en/
Copyright Business Wire 2015