State Street Global Advisors Expands Advanced Beta ETF Offering To Meet
Demand for Multi-Factor Approach
BOSTON -- June 12, 2014
State Street Global Advisors (SSgA), the asset management arm of State Street
Corporation (NYSE:STT) today announced the launch of a suite of advanced beta
SPDR ETFs that seek to combine the performance of quality, value and low
volatility strategies to provide investors the potential diversification
benefits of a multi-factor approach in an objective, transparent and
The nine new ETFs, which are all trading on the NYSE Arca as of June 12, 2014,
*SPDR MSCI World Quality Mix ETF (Symbol: QWLD)
*SPDR MSCI EAFE Quality Mix ETF (QEFA)
*SPDR MSCI Emerging Markets Quality Mix ETF (QEMM)
*SPDR MSCI Australia Quality Mix ETF (QAUS)
*SPDR MSCI Canada Quality Mix ETF (QCAN)
*SPDR MSCI Germany Quality Mix ETF (QDEU)
*SPDR MSCI Japan Quality Mix ETF (QJPN)
*SPDR MSCI Spain Quality Mix ETF (QESP)
*SPDR MSCI United Kingdom Quality Mix ETF (QGBR)
“Advanced beta strategies are a valuable tool in today’s market as they blend
both passive and active investment styles,” said James Ross, executive vice
president and global head of SPDR Exchange Traded Funds at State Street Global
Advisors. “Our new SPDR MSCI Quality Mix ETFs use multi-factor strategies
constructed by combining three MSCI Factor Indices with different risk-return
profiles and correlations. The concept of multi-factor holds appeal with a
majority of investors as an opportunity to manage risk through combined factor
tilts and potentially enhance the resilience of their portfolio through
Advanced beta, also known as alternative or smart beta, refers to a set of
approaches that deviate from the traditional cap-weighted model and instead
weight indices or securities based on alternative rules-based methodologies.
According to a recent SSgA study titled, Beyond Active and Passive, Advanced
Beta Comes of Age^1, 65 percent of institutional investors from North America
and Europe are planning to adopt multi-factor advanced beta strategies, and
nearly 70 percent agree that combining several targeted market exposures as
part of an advanced beta offering makes for a more refined product.
“The ability to combine factors opens up new opportunities for investors and
is growing in popularity for its diversification benefits,” said Diana Tidd,
managing director and head of the MSCI Index Business in the Americas. “The
MSCI Quality Mix Indexes are another example of our ability to deliver
innovative index tools that meet the increasingly sophisticated needs of
clients. We look forward to continuing to work with State Street as they
expand their SPDR MSCI Quality Mix-based ETF offering."
Designed to represent the performance of quality, value and low volatility
factor strategies across global markets in a single composite index, the MSCI
Quality Mix Indexes are an equal weighted combination of the MSCI Value
Weighted, MSCI Minimum Volatility and MSCI Quality Indexes.
All nine SPDR MSCI Quality Mix ETFs feature an expense ratio of 0.30 percent.
For more information on these innovative advanced beta SPDR ETFs and the MSCI
Quality Mix Index methodology, visit spdrs.com.
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® – 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 www.spdrs.com.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset management.
The firm is relied on by sophisticated investors worldwide for its disciplined
investment process, powerful global investment platform and access to every
major asset class, capitalization range and style. SSgA is the asset
management business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
^1State Street Global Advisors commissioned Longitude Research to conduct a
survey of 300 institutional investors including public and private pension
funds, endowments, foundations, insurance companies and private banks.
Respondents were from North America and Europe and represent institutions with
more than $1 billion in assets. In addition to the survey, a series of
in-depth interviews with senior professionals in the institutional investor
community also occurred.
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.
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 www.spdrs.com. Read it
The Fund invests by sampling the index, holding a range of securities that, in
the aggregate, approximates the full Index in terms of key risk factors and
other characteristics. This may cause the Fund to experience tracking errors
relative to performance of the index.
Risk associated with equity investing include stock values which may fluctuate
in response to the activities of individual companies and general market and
Foreign investments involve greater risks than U.S. investments, including
political and economic risks and the risk of currency fluctuations, all of
which may be magnified in emerging markets.
Derivative investments may involve risks such as potential illiquidity of the
markets and additional risk of loss of principal.
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 MSCI EAFE Quality Mix Index, MSCI Emerging Markets Quality Mix Index, and
the MSCI World Quality Mix Index are trademarks of Morgan Stanley Capital
International. The financial products described herein are indexed to an MSCI
index. The financial products referred to herein are not sponsored, endorsed,
or promoted by MSCI, and MSCI bears no liability with respect to any such
financial products or any index which such financial products are based.
State Street Corporation
Elizabeth Bartlett, +1 617-662-2903
Troy Mayclim, +1 914-686-5599
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