State Street Global Advisors (SSgA) launched three new ETFs that attempt to beat market indices by owning a portfolio of ETFs.
"The launch of these three new actively managed SPDR ETFs opens a new chapter in our longstanding commitment to democratizing access to institutional asset classes, strategies, and expertise," said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors.
The new funds, which are actively managed by SSgA's Investment Solutions Group (ISG), attempt to capture inefficiencies that occur due to temporary mis-pricings in the market. ISG relies on a dynamic approach to identifying risk environments and multi-factor quantitative models, with a layer of qualitative analysis applied to the models.
Here's a snapshot of the new ETFs:
Seeks to achieve a real return consisting of capital appreciation and current income by utilizing a fund-of-funds structure to invest in multiple exchange traded products representing asset classes, such as inflation protected securities, real estate, commodities, and natural resources. Its annual expense ratio is 0.70%.
Seeks to provide exposure to income and yield-generating investments using a fund-of-funds structure that invests in multiple exchanged traded products representing asset classes, such as domestic and international equities, investment grade and high yield debt securities, hybrid equity/debt securities (preferred stock and convertible securities), and real estate. Its annual expense ratio is 0.70%.
Seeks to provide income, capital preservation, and low volatility using a fund-of-funds structure that invests in multiple exchange traded products and a SSgA money market fund representing asset classes, such as domestic and international equities, real estate, debt securities, and cash. Its annual expense ratio is 0.35%.
The new series of SPDR asset allocation ETF will own other ETFs. For example, GAL's top three holdings are 28.04% in the SPDR S&P 500 (NYSEArca:SPY - News), 15.97% in the SPDR S&P World ex-US ETF (NYSEArca:GWL - News) and 9.89% in the SPDR Barclays High Yield Bond ETF (NYSEArca:JNK - News).
SSgA's Investment Solutions Group manages more than $160 billion in assets across a wide range of tactical and strategic asset allocation portfolios, is responsible for managing the new SPDR active asset allocation ETFs.
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