Company News »

Street Global Advisors Enhances its Advanced Beta SPDR ETF Offering

Business Wire
Share on StockTwits
Published on

State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT) , today announced that the SPDR MSCI Quality Mix USA ETF (Symbol QUS) began trading on the NYSE Arca. QUS offers investors broad US equity exposure in a portfolio weighted toward attributes that have historically delivered an attractive long-term risk-return profile. The fund tracks a benchmark that uses a transparent rules-based methodology that places an equal focus on three style factors: low volatility, quality and value.

“Investors are increasingly looking for next-generation advanced beta funds that are less subject to the cyclicality of individual styles, which have been shown to go in and out of favor depending on the market environment,” said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “With the addition of QUS to our suite of MSCI Quality Mix SPDR ETFs, investors have access to a passive US equity style combination that is designed to capture gains in improving markets while at the same time mitigate risk during periods of market volatility, all at a fraction of the cost of active management.”

Advanced beta, also known as alternative or smart beta, refers to a rules-based approach that seeks to capture specific factors. Advanced beta strategies are increasingly being used to complement active and index holdings because they combine the transparency, liquidity and flexibility of indexing with the ability to take an active view on which risk factors may outperform over time. The SPDR MSCI Quality Mix USA ETF’s gross and net expense ratio is 0.15 percent. SSGA’s suite of Quality Mix SPDR ETFs now includes 13 ETFs offering access to developed, emerging, single country and global markets.

The SPDR MSCI Quality Mix USA ETF seeks to track the performance of the MSCI USA Quality Mix A-Series Index. The index is an equal weighted combination of the MSCI USA Value Weighted, MSCI USA Minimum Volatility and MSCI USA Quality Indexes in a single multi-factor index to represent the performance of quality, value and low volatility strategies. As of February 27, 2015, the index was comprised of 631 large and mid-cap companies across the US markets.

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(R) – 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

About State Street Global Advisors

For nearly four decades, State Street Global Advisors has been committed to helping our clients, and those who rely on them, achieve financial security. We partner with many of the world’s largest, most sophisticated investors and financial intermediaries to help them reach their goals through a rigorous, research-driven investment process spanning both indexing and active disciplines. With trillions* in assets, our scale and global reach offer clients unrivaled access to markets, geographies and asset classes, and allow us to deliver thoughtful insights and innovative solutions.

State Street Global Advisors is the investment management arm of State Street Corporation.

*Assets under management were $2.45 trillion as of December 31, 2014. This AUM total includes the assets of the SPDR Gold Trust (approx. $27.3 billion as of December 31, 2014), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent. Please note that AUM totals are unaudited.

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.

A “value” style of investing emphasizes undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” equity securities are less than returns on other styles of investing or the overall stock market.

Although subject to the risks of common stocks, low volatility stocks are seen as having a lower risk profile than the overall markets. However, a fund that invests in low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks’ price levels.

A “quality” style of investing emphasizes companies with high returns, stable earnings, and low financial leverage. This style of investing is subject to the risk that the past performance of these companies does not continue or that the returns on “quality” equity securities are less than returns on other styles of investing or the overall stock market.

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 funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with SSgA Funds Management, Inc and any related funds.

“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(R), S&P(R), SPDR(R), S&P 500(R), S&P MIDCAP 400(R), and Select Sector SPDRs(R) 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 visit Read it carefully.

Not FDIC Insured * No Bank Guarantee * May Lose Value


Share on StockTwits