New State Street Global Advisors ETFs Aimed at Providing Clients with Income and Inflation Protection
BOSTON--(BUSINESS WIRE)-- State Street Global Advisors (SSgA)*, the asset management arm of State Street Corporation (NYS: STT) , today announced the availability of the SPDR S&P Global Dividend ETF (Symbol:WDIV) and the SPDR Barclays 1-10 Year TIPS ETF (Symbol:TIPX). The SPDR S&P Global Dividend ETF is designed to provide investors with precise exposure to both developed and emerging market dividend paying companies, through a globally diversified income portfolio strategy. The SPDR Barclays 1-10 Year TIPS ETF is designed to provide investors with access to U.S. Treasury Inflation-Protected Securities (TIPS). Both funds began trading on NYSE Arca on May 30, 2013.
"In the sustained low rate environment, clients are grappling with how to meet their income objectives while staying within their own risk boundaries. Investors are embracing strongly diversified income products to provide a level of downside protection in their portfolios, as evidenced by the growth of the SPDR S&P Dividend ETF (Symbol:SDY), the SPDR S&P Emerging Markets Dividend ETF (Symbol:EDIV) and the SPDR S&P International Dividend ETF (Symbol:DWX)," said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at SSgA. "The new SPDR S&P Global Dividend ETF adds to this suite of products and gives investors access to companies in both developed and emerging markets that have consistently delivered high yield dividends over the last ten years."
The SPDR S&P Global Dividend ETF seeks to track the performance of the S&P Global Dividend Aristocrats Index, which measures the performance of the highest dividend yielding companies within the S&P Global Broad Market Index (BMI) that have followed a policy of increasing or stable dividends for at least 10 consecutive years. To ensure diversification, the weight for each index constituent is capped at 3 percent, and the weight of each country and GICS Sector is capped at 25 percent at each index rebalancing. The SPDR S&P Global Dividend ETF's expense ratio is 0.40 percent.
The SPDR Barclays 1-10 Year TIPS ETF seeks to track the performance of the Barclays 1-10 Year Government Inflation-linked Bond Index. The Index includes publicly issued TIPS that have at least 1 year remaining to maturity and less than 10 years on index rebalancing date, with an issue size equal to or in excess of $500 million. The SPDR Barclays 1-10 Year TIPS ETF's expense ratio is 0.15 percent.
For more information about the SPDR S&P Global Dividend ETF and the SPDR Barclays 1-10 Year TIPS ETF, visit www.spdrs.com.
SSgA manages more than $352 billion** in SPDR ETF assets worldwide (as of March 31, 2013) and is one of the largest ETF providers globally.
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 Corporation. 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). Since then, we've sustained our place as an industry innovator through 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.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation.
**This AUM includes the assets of the SPDR Gold Trust (approx. $62.7 billion as of March 31, 2013), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.
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.
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.
Non-diversified funds that focus on a relatively small number of issuers and countries tend to be more volatile than diversified funds and the market as a whole.
Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.
Increase in real interest rates can cause the price of inflation-protected debt securities to decrease. Interest payments on inflation-protected debt securities can be unpredictable.
The SPDR S&P Global Dividend ETF 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 which may cause the Fund to experience tracking errors relative to performance of the index.
"SPDR" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and has been licensed for use by State Street Corporation. STANDARD & POOR'S, S&P, S&P 500 and S&P MIDCAP 400 are registered trademarks of Standard & Poor's Financial Services LLC 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 visitwww.spdrs.com. Read it carefully.
State Street Corporation
Elizabeth Bartlett, +1 617 662 2903
Troy Mayclim, +1 914 686 5599
KEYWORDS: United States North America Massachusetts
The article New State Street Global Advisors ETFs Aimed at Providing Clients with Income and Inflation Protection originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.