SSGA Makes It Easier for ETF Investors to Target Popular Benchmarks at a Cheap Price | ETF Trends

State Street Global Advisor has updated its suite of low-cost SPDR Portfolio exchange traded funds to help investors garner core market exposure to some of the most popularly observed S&P Dow Jones Indices.

Specifically, State Street Global Advisors has made changes to four of its low-cost SPDR Portfolio ETFs, including:

  • SPDR Portfolio Total Stock Market ETF (NYSEArca: SPTM), which tracked the SSGA Total Stock Market Index and came with a 0.03% expense ratio
  • SPDR Portfolio Large Cap ETF (NYSEArca: SPLG), which tracked the SSGA Large Cap Index and came with a 0.03% expense ratio
  • SPDR Portfolio Mid Cap ETF (NYSEArca: SPMD), which tracked the S&P 1000 Index and came with 0.05% expense ratio
  • SPDR Portfolio Small Cap ETF (NYSEArca: SPSM), which tracked the SSGA Small Cap Index and came with a 0.05% expense ratio

The ETFs will now come with new names and track a new benchmark, but they will still retain their previous ticker symbols and expense ratios. As of January 24, the new ETF changes include:

  • SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEArca: SPTM), which tracks the S&P Composite 1500 Index and has a 0.03% expense ratio
  • SPDR Portfolio S&P 500 ETF (NYSEArca: SPLG), which tracks the S&P 500 Index and has a 0.03% expense ratio
  • SPDR Portfolio S&P 400 Mid Cap ETF (NYSEArca: SPMD), which tracks the S&P MidCap 400 Index and has a 0.05% expense ratio
  • SPDR Portfolio S&P 600 Small Cap ETF (NYSEArca: SPSM), which tracks the S&P SmallCap 600 Index and has a 0.05% expense ratio

“Our goal is to offer products with purpose, providing a suite of low-cost precision exposures in an ETF wrapper that can then be deployed by investors as they build portfolios to deliver target investment outcomes,” Rory Tobin, Global Head of SPDR Business at State Street Global Advisors, said in a note. “There is strong investor demand for S&P benchmarks with over $12.5 trillion in global assets tracking their indices. SPDR is now the only ETF provider that offers the full spectrum of low-cost S&P ETFs spanning the S&P 500®, S&P MidCap 400®, S&P SmallCap 600® and S&P Composite 1500® – as well as the S&P 500® Growth, Value and Dividend style exposures.”

The index changes could help the demand for a more simply arranged ETF investment tool option that provide exposure to to targeted US equity markets in a cost-effective way. SPTM is also the only ETF currently available tracking the S&P Composite 1500 Index.

“Almost 27 years ago to the day, we launched SPY, the SPDR S&P 500 ETF Trust, the innovation that sparked the ETF investing revolution,” Sue Thompson, Head of SPDR Americas Distribution at State Street Global Advisors, said in the note. “Today we continue our history of democratizing investing with funds among the lowest cost in the industry – including an ETF indexed to the S&P 500 with a total expense ratio of 3 basis points. Taken together, our S&P products are designed to cater to both the ‘buy and hold’ investor as well as to those that value the flexibility of industry-leading levels of liquidity. In short, whichever feature investors value, we have a suite of S&P ETFs to suit their potential needs.”