SSGA Launches Suite of Ultra-Low-Cost SPDR Portfolio ETFs

State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), announced the launch of SPDR Portfolio ETFs, a suite of 15 ultra-low-cost ETFs that provide access to a wide range of equity and fixed income asset classes to help investors meet their goals.

Comprising 15 existing funds, including three that will track new indices, and with over $11B[1] in existing assets under management, the SPDR Portfolio ETFs include:

We are truly excited to be able to offer ultra-low-cost ETFs to investors.Since launching SPY nearly 25 years ago, State Street Global Advisors has continually looked for opportunities to help investors build better portfolios with ETFs, said Nick Good, co-head of the Global SPDR business at SSGA. Investors have been asking us to provide these solutions to offer them a greater choice for low cost ETFs. The launch of the SPDR Portfolio ETFs provides a solution that meets this growing demand.

“Each fund in the SPDR Portfolio suite is priced equal to or below the lowest fee ETF in the category,” said Rory Tobin, co-head of the Global SPDR business at SSGA. Someof these changes in price are significant – such as offering Emerging Markets exposure at 11 basis points. In addition, these funds have a combined total of over $11B[2] in assets and trade actively, so there is no incubation period needed.”

Today’s launch of SPDR Portfolio ETFs coincides with the launch of TD Ameritrades newly expanded ETF Market Center. The 15 SPDR portfolio ETFs will all be available to purchase commission free on TD Ameritrades ETF Market Center.

“TD Ameritrade has been a great collaborator, said Good. With their help, and by repurposing existing SPDR ETFs, we have been able to offer investors a very compelling solution for their portfolios.”

The suite of SPDR Portfolio ETFs will provide investors access to a broad range of asset classes to assist in the construction of a core portfolio strategy, including fixed income, domestic equity, emerging market and international equity.

Research has long shown that asset allocation decisions explain over 90 percent of the variance in portfolio returns, said Matt Bartolini, head of SPDR Americas Research. Simply put, it all starts with asset allocation. And todays low return expectations make building an ultra-low-cost, diversified core more important than ever, as costs accumulate over time, eroding a portfolios total return.

SSGA also announced changes to the names and tickers of the 15 ETFs now included in the suite of SPDR Portfolio ETFs. Effective October 16, 2017, the below changes will be made and no action is required by shareholders to effect these changes.

Coinciding with the launch of the SPDR Portfolio ETF suite, SSGA is introducing three new proprietary indices to provide investors with diversified exposure to the U.S. large cap market, U.S. small cap market and the total U.S. equity market, encompassing stocks of all market capitalizations. The following index changes are effective November 16, 2017:

SSGA Total Stock Market Index

The SSGA Total Market Index (the Index), is designed to measure the performance of the broad market segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the broad market segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

SSGA Large Cap Index

The SSGA Large Cap Index (the Index), is designed to measure the performance of the large-capitalization segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index includes the securities of companies whose cumulative total market cap represents approximately the top 90% of the investible universe. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the large-capitalization segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

SSGA Small Cap Index

The SSGA Small Cap Index (the Index), is designed to measure the performance of the small-capitalization segment of the U.S. equity market. The investible universe of the Index comprises all equity securities listed on major U.S. exchanges that are either incorporated or headquartered in the U.S. and meet minimum and maximum price, size, free float ratio and liquidity requirements. The Index includes the securities of companies whose cumulative total market cap represents approximately the bottom 10% of the investible universe. The Index was created and is sponsored by State Street Global Advisors. ICE Data Indices is responsible for the day-to-day management, calculation, and distribution of the index.

The Index is constructed to provide a comprehensive and unbiased barometer for the small-capitalization segment of the U.S. equity market and is reconstituted semi-annually to ensure continued appropriate representation. The Index is weighted by float-adjusted market capitalization at each semi-annual rebalance. The Index rebalance date is the last business day in April and October.

Definitions:

Float-Adjusted Market Capitalization:

An index methodology that determines the market capitalization of an index based on the shares outstanding of the underlying companies deemed available for purchase in the public equity markets by international investors.

Free-float methodology:

Market capitalization is calculated by taking the equity’s price and multiplying it by the number of shares readily available in the market.