State Street Global Advisors (SSgA) launched three new
that attempt to beat market indices by owning a portfolio of ETFs.
"The launch of these three new actively managed SPDR ETFs opens a
new chapter in our longstanding commitment to democratizing access
to institutional asset classes, strategies, and expertise," said
James Ross, senior managing director and global head of SPDR
Exchange Traded Funds at State Street Global Advisors.
The new funds, which are actively managed by SSgA's Investment
Solutions Group (
), attempt to capture inefficiencies that occur due to temporary
mis-pricings in the market. ISG relies on a dynamic approach to
identifying risk environments and multi-factor quantitative models,
with a layer of qualitative analysis applied to the models.
Here's a snapshot of the new ETFs:
SPDR SSgA Multi-Asset Real Return ETF (NYSEArca:
Seeks to achieve a real return consisting of capital appreciation
and current income by utilizing a fund-of-funds structure to invest
in multiple exchange traded products representing asset classes,
such as inflation protected securities, real estate, commodities,
and natural resources. Its annual expense ratio is 0.70%.
SPDR SSgA Income Allocation ETF (NYSEArca: INKM)
Seeks to provide exposure to income and yield-generating
investments using a fund-of-funds structure that invests in
multiple exchanged traded products representing asset classes, such
as domestic and international equities, investment grade and high
yield debt securities, hybrid equity/debt securities (preferred
stock and convertible securities), and real estate. Its annual
expense ratio is 0.70%.
SPDR SSgA Global Allocation ETF (NYSEArca: GAL)
Seeks to provide income, capital preservation, and low volatility
using a fund-of-funds structure that invests in multiple exchange
traded products and a SSgA money market fund representing asset
classes, such as domestic and international equities, real estate,
debt securities, and cash. Its annual expense ratio is 0.35%.
The new series of SPDR asset allocation
will own other ETFs. For example, GAL's top three holdings are
28.04% in the SPDR S&P 500 (NYSEArca: SPY), 15.97% in the
SPDR S&P World ex-US ETF (NYSEArca: GWL) and 9.89% in the SPDR
Barclays High Yield Bond ETF (NYSEArca: JNK).
SSgA's Investment Solutions Group manages more than $160 billion
in assets across a wide range of tactical and strategic asset
allocation portfolios, is responsible for managing the new SPDR
active asset allocation ETFs.