A new exchange traded fund (ETF) from State Street Global Advisors gives investors access to the mortgage market – a first for the ETF industry.

State Street Global Advisors announced a new addition to the SPDR family, which began trading today on the NYSE Arca. The SPDR KBW Mortgage Finance ETF (KME) is the premier fund to give investors access to specific equities within the mortgage finance industry.

The index, KBW Mortgage Finance Index, is a modified market-capitalization weighted index of the stocks listed on U.S. stock markets comprising of pure mortgage players, mortgage processors, title insurers, homebuilders, and banks and thrifts where mortgage loans dominate the loan book, according to Business Wire. As of the end of March, it included 24 stocks, with an expense ratio of 0.35%.

This may prove to  be a diversified, and cost-effective way to gain exposure to the reale estate finance indsutry.

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