SSgA SPDR expands smart beta ETF line-up

Jun 13th, 2014 | By | Category: Equities

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State Street Global Advisors (SSgA), the asset manager behind the SPDR exchange-traded funds brand, has expanded its suite of “advanced beta” ETFs with the launch of nine new products on the NYSE Arca.

SSgA SPDR expands smart beta ETF line-up

SSgA has expanded its smart beta line-up with the launch of nine new ETFs linked to MSCI Factor Indices.

Linked to MSCI indices, the new funds 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 consistent manner.

James Ross, executive vice president and global head of SPDR ETFs at SSgA, said: “Advanced beta strategies are a valuable tool in today’s market as they blend both passive and active investment styles. 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 strategic exposure.”

Advanced beta – also known as “alternative beta” 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, 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.

Diana Tidd, managing director and head of the MSCI Index Business in the Americas, said: “The ability to combine factors opens up new opportunities for investors and is growing in popularity for its diversification benefit. 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.”

The nine new ETFs include:

SPDR MSCI World Quality Mix ETF (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)

The ETFs have expense ratios of 0.30 percent.

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