In trying to keep up with an evolving ETF industry, ETF providers have also had to adapt and come out with new ways to stay competitive, which have all ended up benefiting investors.
For example, State Street Global Advisors has revamped a number of its ETFs and grouped them into the SPDR Portfolio ETFs, a line of ultra-low-cost funds that can help investors customize a diversified investment portfolio.
“What a phenomenal start it has been,” Sue Thompson, Executive Vice President and Head of SPDR Americas Distribution at State Street Global Advisors, said at the Charles Schwab IMPACT 2018 conference.
“Having worked with TD Ameritrade and putting them on their no transaction fee platform; RIAs responded just as we knew that they would, and we’ve already seen $20 billion in net new assets just in the past year,” Thompson added.
Investors are also voting with their wallets, and many are turning to low-cost ETFs to gain broad market exposure. These SPDR ETFs with a 0.03% expense ratio are among the cheapest in the U.S. industry today.
The group of 15 SPDR “Portfolio” ETFs include:
- SPDR Portfolio Total Stock Market ETF (NYSEArca: SPTM) 0.03% expense ratio
- SPDR Portfolio Large Cap ETF (NYSEArca: SPLG) 0.03% expense ratio
- SPDR Portfolio Mid Cap ETF (NYSEArca: SPMD) 0.05% expense ratio
- SPDR Portfolio Small Cap ETF (NYSEArca: SPSM) 0.05% expense ratio
- SPDR Portfolio S&P 500 Growth ETF (NYSEArca: SPYG) 0.04% expense ratio
- SPDR Portfolio S&P 500 Value ETF (NYSEArca: SPYV) 0.04% expense ratio
- SPDR Portfolio S&P 500 High Dividend ETF (NYSEArca: SPYD) 0.07% expense ratio
- SPDR Portfolio World ex-US ETF (NYSEArca: SPDW) 0.04% expense ratio
- SPDR Portfolio Emerging Markets ETF (NYSEArca: SPEM) 0.11% expense ratio
- SPDR Portfolio Aggregate Bond ETF (NYSEArca: SPAB) 0.04% expense ratio
- SPDR Portfolio Long Term Corporate Bond ETF (NYSEArca: SPLB) 0.07% expense ratio
- SPDR Portfolio Intermediate Term Corporate Bond ETF (NYSEArca: SPIB) 0.07% expense ratio
- SPDR Portfolio Short Term Corporate Bond ETF (NYSEArca: SPSB) 0.07% expense ratio
- SPDR Portfolio Long Term Treasury ETF (NYSEArca: SPTL) 0.06% expense ratio
- SPDR Portfolio Short Term Treasury ETF (NYSEArca: SPTS) 0.06% expense ratio
State Street has also come out with more innovative ETF offerings, including its Kensho suite. The SPDR Kensho Intelligent Structures ETF (NYSEArca: XKII), SPDR Kensho Smart Mobility ETF (NYSEArca: XKST) and SPDR Kensho Future Security ETF (NYSEArca: XKFS) may help investors focus on the potential growth opportunity in next-generation or disruptive technologies.
“What I love about Kensho is that they use machine learning and they comb through thousands and thousands pages of regulatory filing for more of a forward-looking view into what is going to happen with disruptive technologies. It’s like we’re using A.I. to find A.I.,” Thompson added.
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