Traders who want to improve their risk-adjusted returns need look no further.
State Street Global Advisors, the asset management business of State Street Corporation, announced the launch of three new U.S. smart beta exchange traded funds (ETFs). According to State Street, the new ETFs are designed to serve as core portfolio building blocks that can help investors improve their risk-adjusted returns. Also, these SPDR ETFs represent smart beta strategies that may offer income generation, low volatility and alpha potential.
The three new ETFs, which began trading on the NYSE Arca, include:
SPDR Russell 1000 Yield Focus ETF (ONEY)
SPDR Russell 1000 Momentum Focus ETF (ONEO)
SPDR Russell 1000 Low Volatility Focus ETF (ONEV)
The adoption of smart beta strategies has been one of the most powerful trends in investing over the recent years and investors are now rethinking their core exposures to leverage approaches that seek to bridge the gap between active and passive, said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors. In providing a new approach to factor investing that can help capture prevailing investor objectives, ONEY, ONEO and ONEV represent an exciting new chapter in the evolution of smart beta ETFs.
These three new smart beta ETFs were developed with the Alaska Permanent Fund Corporation (APFC) as a cornerstone investor in the funds.
The ETFs are designed to track the performance of rules based indexes from FTSE Russell. The Russell 1000 Focus ETFs are designed for investors who want to tailor their specific risk and return objectives while maintaining a core position within US equities. The objectives include looking for yield (ONEY), growth potential (ONEO) or low volatility (ONEV).
With the addition of the three new focused factor ETFs, SSGAs smart beta product offerings now total $81 billion in AUM.
These new SPDR ETFs each have a gross expense ratio of 0.20 percent.
