State Street Global Advisors Enhances its SPDR® Portfolio ETF™ Suite
Investors Can Now Build a Low-Cost Core Portfolio for Even Less
BOSTON, August 01, 2023--(BUSINESS WIRE)--State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced total expense ratio ("TER") reductions on 10 funds in its low-cost SPDR Portfolio ETF suite. These reductions make the funds the lowest or among the lowest-cost ETF offerings in their respective peer groups.1
Effective August 1 2023, the total expense ratios of the following funds were lowered as follows:
Ticker | Name | Previous | New TER (bps) |
SPLG | SPDR Portfolio S&P 500 ETF | 3 | 2 |
SPMD | SPDR Portfolio S&P 400 Mid Cap ETF | 5 | 3 |
SPSM | SPDR Portfolio S&P 600 Small Cap ETF | 5 | 3 |
SPDW | SPDR Portfolio Developed World ex-US ETF | 4 | 3 |
SPEU | SPDR Portfolio Europe ETF | 9 | 7 |
SPEM | SPDR Portfolio Emerging Markets ETF | 11 | 7 |
SPTS | SPDR Portfolio Short Term Treasury ETF | 6 | 3 |
SPTI | SPDR Portfolio Intermediate Term Treasury ETF | 6 | 3 |
SPTL | SPDR Portfolio Long Term Treasury ETF | 6 | 3 |
SPHY | SPDR Portfolio High Yield Bond ETF | 10 | 5 |
Source: State Street Global Advisors, as of August 1, 2023. |
* One basis point (bps) is equal to one-hundredth of 1 percent, or 0.01%. |
"Low-cost ETFs are attractive to buy and hold investors who want to limit the impact of fees on the long-term performance of their portfolios," said Sue Thompson, Head of SPDR Americas Distribution at State Street Global Advisors. "With 22 funds across a broad range of asset classes, SPDR Portfolio ETFs are designed to help investors build resilient and diversified portfolios that allow them to keep more of what they earn. In fact, in the last two years, State Street Global Advisors has reduced expense ratios on 20 ETFs across our US line up, demonstrating our commitment to the democratization of investing by delivering institutional quality investment solutions at competitive price points."
With these cuts the median cost of our SPDR Portfolio ETFs are now 95% less expensive than the median cost of a US-domiciled mutual fund.2
As the ETF marketplace becomes more competitive, investors are keeping an eye on cost as an important component of their total cost of ownership. Our research shows that over the course of a decade, a portfolio invested at the median cost of US-domiciled mutual funds would have given up 8.2% of starting principal to fees.3
"Educating investors and advisors about how ETFs can help to reduce total cost of ownership is a key focus for State Street Global Advisors. We are pleased to be able to make investing in ETFs even more affordable, especially for newer investors who are just getting started and those using ETFs to build a core portfolio. We believe that as the core is typically the largest part of a portfolio, it’s important to use cost-effective solutions over the long term," Thompson added.
Launched in 2017, the SPDR Portfolio ETF suite is designed to provide investors greater choice in low-cost ETFs. The suite provides exposure to US equity, international equity, and fixed income asset classes to help investors build a diversified core portfolio of stocks and bonds with ETFs priced as low as two basis points. Widely embraced by investors, SPDR Portfolio ETFs have more than $151 billion in assets.4
As the creator of the world’s first ETFs, SPDR’s innovation in ETFs is driven by its commitment to delivering low-cost, efficient solutions for investors and more than 40 years of indexing experience. SPDR Portfolio ETFs are backed by the same team and processes that have made SPDR a leader in ETF investing.
Click here for the complete lineup of SPDR Portfolio ETFs.
To learn more about how investors are using low-cost ETFs to achieve a variety of investment objectives, read Build a Low-Cost Core Portfolio with SPDR ETFs.
For more information on the SPDR ETF suite, visit www.ssga.com/etfs.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth largest asset manager* with US $3.8 trillion† under our care.
*Pensions & Investments Research Center, as of 12/31/22. |
†This figure is presented as of June 30, 2023 and includes approximately $63 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited. |
Footnotes |
1 Bloomberg Finance L.P., State Street Global Advisors as of 8/1/2023. |
2State Street Global Advisors per Morningstar, as of 8/1/2023. Based on Median Prospectus Net Expense ratio for US domiciled open-end mutual funds across 18 Morningstar categories representing SPDR Portfolio ETFs. |
3 Morningstar, as 05/09/2023. Based on Median Prospectus Net Expense ratio of 0.82% for US domiciled mutual funds across 18 Morningstar categories representing SPDR Portfolio ETFs. Actual fees paid by an investor may vary. |
4 Bloomberg Finance L.P., as of 6/30/2023. |
Glossary
Basis Point (bps) A unit of measure for interest rates, investment performance, pricing of investment services and other percentages in finance. One basis point is equal to one-hundredth of 1 percent, or 0.01%.
Important Risk Information
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.
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