Investors Can Now Build a Low-Cost Core Portfolio for Even Less

BOSTON, August 01, 2023--(BUSINESS WIRE)--State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced total expense ratio ("TER") reductions on 10 funds in its low-cost SPDR Portfolio ETF suite. These reductions make the funds the lowest or among the lowest-cost ETF offerings in their respective peer groups.¹

Effective August 1 2023, the total expense ratios of the following funds were lowered as follows:

"Low-cost ETFs are attractive to buy and hold investors who want to limit the impact of fees on the long-term performance of their portfolios," said Sue Thompson, Head of SPDR Americas Distribution at State Street Global Advisors. "With 22 funds across a broad range of asset classes, SPDR Portfolio ETFs are designed to help investors build resilient and diversified portfolios that allow them to keep more of what they earn. In fact, in the last two years, State Street Global Advisors has reduced expense ratios on 20 ETFs across our US line up, demonstrating our commitment to the democratization of investing by delivering institutional quality investment solutions at competitive price points."

With these cuts the median cost of our SPDR Portfolio ETFs are now 95% less expensive than the median cost of a US-domiciled mutual fund.²

As the ETF marketplace becomes more competitive, investors are keeping an eye on cost as an important component of their total cost of ownership. Our research shows that over the course of a decade, a portfolio invested at the median cost of US-domiciled mutual funds would have given up 8.2% of starting principal to fees.³

"Educating investors and advisors about how ETFs can help to reduce total cost of ownership is a key focus for State Street Global Advisors. We are pleased to be able to make investing in ETFs even more affordable, especially for newer investors who are just getting started and those using ETFs to build a core portfolio. We believe that as the core is typically the largest part of a portfolio, it’s important to use cost-effective solutions over the long term," Thompson added.

Launched in 2017, the SPDR Portfolio ETF suite is designed to provide investors greater choice in low-cost ETFs. The suite provides exposure to US equity, international equity, and fixed income asset classes to help investors build a diversified core portfolio of stocks and bonds with ETFs priced as low as two basis points. Widely embraced by investors, SPDR Portfolio ETFs have more than $151 billion in assets.⁴

As the creator of the world’s first ETFs, SPDR’s innovation in ETFs is driven by its commitment to delivering low-cost, efficient solutions for investors and more than 40 years of indexing experience. SPDR Portfolio ETFs are backed by the same team and processes that have made SPDR a leader in ETF investing.

Click here for the complete lineup of SPDR Portfolio ETFs.

To learn more about how investors are using low-cost ETFs to achieve a variety of investment objectives, read Build a Low-Cost Core Portfolio with SPDR ETFs.

For more information on the SPDR ETF suite, visit www.ssga.com/etfs.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth largest asset manager* with US $3.8 trillion† under our care.

Glossary

Basis Point (bps) A unit of measure for interest rates, investment performance, pricing of investment services and other percentages in finance. One basis point is equal to one-hundredth of 1 percent, or 0.01%.

Important Risk Information

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

Investing involves risk, including the risk of loss of principal.

This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.

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.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates ("S&P DJI") and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®,US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.

Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect 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.

State Street Global Advisors, One Iron Street, Boston, MA 02210.

Before investing, consider the fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 866.787.2257 or visit ssga.com. Read it carefully.

© 2023 State Street Corporation. All Rights Reserved.

5630045.1.1.AM.RTL Exp. Date: 08/31/2024

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Contacts

Deborah Heindel
+1 617 662 9927
DHEINDEL@StateStreet.com