State Street’s State Street Global Advisors (SSgA) unit, the third-largest U.S. issuer of exchange trade funds, could become the latest ETF issuer to try its hand at an Internet ETF.
In a recent filing with the Securities and Exchange Commission, SSgA revealed plans for the SPDR S&P Internet ETF. The filing did not include a ticker or expense ratio, indicating it could be awhile before the new ETF hits the market.
Assuming it comes to market, the new ETF will track the S&P Internet Select Industry Index and employ a sampling strategy, “which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index,” according to the filing.[related_stories]
Familiar names in that index include Groupon (NASDAQ: GRPN), Facebook (NASDAQ: FB) and Priceline (NASDAQ: PCLN), according to S&P Dow Jones Indices. The index has been around for nearly 11 years.
Tom Lydon’s clients own shares of Facebook.
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