State Street Global Advisors Enhances Single-Country SPDR ETF Suite

By Business Wire

New Lineup of Single-Country SPDR ETFs Features Lower Expense Ratios,
New Benchmarks and the Addition of the SPDR Solactive Hong Kong ETF

State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced that four existing single-country SPDR ETFs that provide exposure to Canada, Germany, Japan and the United Kingdom will change indices, names and tickers, and carry lower expense ratios. In addition, the firm will launch the SPDR Solactive Hong Kong ETF (ZHOK), at start of trading on Wednesday, September 19, 2018.

The SPDR Solactive Hong Kong ETF will track the Solactive GBS Hong Kong Large & Mid Cap Index, a market capitalization index designed to measure the equity market performance of large and mid-cap companies in Hong Kong. As of August 30, 2018, the index comprised 58 securities. ZHOK has a net expense ratio of 0.14%1 and begins trading on the NYSE Arca exchange on Wednesday.

In addition to the launch of ZHOK, State Street Global Advisors is making changes to four single-country ETFs. Effective today, September 18, 2018, the funds will no longer track StrategicFactorsTM smart beta indices and will instead track market capitalization weighted
indices designed by Solactive. As a result, the funds’ names, tickers and expense ratios will change as detailed below:

Previous Fund Name

Previous Index

New Fund Name

New Index


New Net

StrategicFactors ETF (QCAN)

MSCI Canada Factor Mix
A-Series Capped Index

SPDR Solactive Canada

Solactive GBS Canada
Large & Mid Cap Index

0.30% 0.14%

StrategicFactors ETF (QDEU)

MSCI Germany Factor
Mix A-Series Capped Index

SPDR Solactive
Germany ETF (ZDEU)

Solactive GBS Germany
Large & Mid Cap Index

0.30% 0.14%

SPDR MSCI United Kingdom
StrategicFactors ETF (QGBR)

MSCI UK Factor Mix A-Series
Capped Index

SPDR Solactive United
Kingdom ETF (ZGBR)

Solactive GBS United Kingdom
Large & Mid Cap Index

0.30% 0.14%

StrategicFactors ETF (QJPN)

MSCI Japan Factor Mix A-Series
Capped Index

SPDR Solactive Japan

Solactive GBS Japan
Large & Mid Cap Index

0.30% 0.14%

“Investors are seeking traditional market-cap weighted beta indices when adding country-specific international exposures to their portfolios,” said Noel Archard, global head of SPDR Product at State Street Global Advisors. “Launching the SPDR Solactive Hong Kong ETF, while also changing the underlying indices and lowering the fees of four single-country SPDRs, provides our clients with an offering that is better aligned with their approach to single-country strategies.”

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 Corporation. 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

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 active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. 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 third largest asset manager with nearly US $2.72 trillion* under our care.

*This figure is presented as of June 30, 2018 and includes approximately $33 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are

1 The gross expense ratio for these funds is 20 basis points. The gross expense ratio is the fund’s total annual operating expenses ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the fund’s most recent prospectus. These funds have current fee agreements in place that reduce fund expenses and if removed or modified will result in higher expense ratios and reduce fund performance. Such contractual fee  agreements are scheduled to expire on 1/31/2020.

Important Risk Information

In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETF shares may be bought and sold on the exchange through any brokerage account, ETF shares are not individually redeemable from the Fund.

Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only. Please see the prospectus for more details.

A “value” style of investing emphasizes undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” equity securities are less than returns on other
styles of investing or the overall stock market.

Although subject to the risks of common stocks, low volatility stocks are seen as having a lower risk profile than the overall markets. However, a fund that invests in low volatility stocks may not produce investment exposure that has lower variability to changes in such
stocks’ price levels.

A “quality” style of investing emphasizes companies with high returns, stable earnings, and low financial leverage. This style of investing is subject to the risk that the past performance of these companies does not continue or that the returns on “quality” equity securities are less than returns on other styles of investing or the overall stock market.

Foreign (non-U.S.) Securities may be subject to greater political, economic, environmental, credit and information risks. Foreign securities may be subject to higher volatility than U.S. securities, due to varying degrees of regulation and limited liquidity. These risks are
magnified in emerging markets.

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

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.

Passively managed funds hold 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.

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.

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.

This article provided by NewsEdge.