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:
- SPDR MSCI World Quality Mix ETF (Symbol: QWLD)
- SPDR MSCI EAFE Quality Mix ETF (QEFA)
- SPDR MSCI Emerging Markets Quality Mix ETF (QEMM)
- SPDR MSCI Australia Quality Mix ETF (QAUS)
- SPDR MSCI Canada Quality Mix ETF (QCAN)
- SPDR MSCI Germany Quality Mix ETF (QDEU)
- SPDR MSCI Japan Quality Mix ETF (QJPN)
- SPDR MSCI Spain Quality Mix ETF (QESP)
- 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.
Elizabeth Bartlett, +1 617-662-2903
Troy Mayclim, +1 914-686-5599