State Street Global Advisors has launched the SPDR Portfolio ETFs, a suite of 15 dirt-cheap ETFs to provide exposure to a range of core equity and fixed-income asset classes.

The new 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

“Investors have been asking us to provide these solutions to offer them a greater choice for low cost ETFs. The launch of the SPDR Portfolio ETFs provides a solution that meets this growing demand,” Nick Good, co-head of the Global SPDR business at SSGA, said in a note.

The Portfolio ETFs are among the cheapest ETF options on the market, contending with other low cost players like Charles Schwab, BlackRock’s iShares and vanguard. To put ETF costs in perspective, there are 2,029 U.S.-listed ETFs on the market with an average expense ratio of 0.58%.

“With its slashing of fees for a variety of ETFs, many tied to prominent indices, SSGA has aggressively crashed the low-fee ETF party consisting of iShares, Vanguard and Schwab,” Todd Rosenbluth, Director of ETF & Mutual Fund Research, said in a note. “However, while those firms have been bringing down expenses ratios by a basis point or two in recent years, some of the SSGA ETF cuts were by 10 basis points or more, including international equity ETFs trading under new tickers SPDW and SPEM. Though we have not believed other moves were part of a fee war, SSGA is heading us down a path of no retreat.”

The 15 Portfolio ETFs are not new ETFs in the normal sense since State Street has repurposed 15 existing ETFs. The new 15 Portfolio ETFs use to be respectively known as:

  • SPDR Russell 3000 ETF (NYSEArca: THRK)
  • SPDR Russell 1000 ETF (NYSEArca: ONEK)
  • SPDR S&P 1000 ETF (NYSEArca: SMD)
  • SPDR Russell 2000 ETF (NYSEArca: TWOK)
  • SPDR S&P 500 Growth ETF (NYSEArca: SPYG)
  • SPDR S&P 500 Value ETF (NYSEArca: SPYV)
  • SPDR S&P 500 High Dividend ETF (NYSEArca: SPYD)
  • SPDR S&P® World ex-US ETF (NYSEArca: GWL)
  • SPDR S&P Emerging Markets ETF (NYSEArca: GMM)
  • SPDR Bloomberg Barclays Aggregate Bond ETF (NYSEArca: BNDS)
  • SPDR Bloomberg Barclays Long Term Corporate Bond ETF (NYSEArca: LWC)
  • SPDR Bloomberg Barclays Intermediate Term Corporate Bond ETF (NYSEArca: ITR)
  • SPDR Bloomberg Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB)
  • SPDR Bloomberg Barclays Long Term Treasury ETF (NYSEArca: TLO)
  • SPDR Bloomberg Barclays Short Term Treasury ETF (NYSEArca: SST)

Additionally, SPTM will now track the SSGA Total Track Market Index. SPLG will follow the SSGA Large Cap Index and SPDR Portfolio Small Cap ETF will reflect the SSGA Small Cap Index.

The revamped suite of core State Street SPDR ETFs reveals the increased focus on low-cost fees as a catalyst for asset growth in the industry. State Street was previously the second largest U.S.-listed ETF provider by assets under management, but it has been eclipsed by Vanguard Group in the ongoing so-called ETF fee war that has pushed expense ratios closer and closer to zero.

“Demand for low-cost ETFs has accelerated in recent years, as advisors and investors have replaced mutual funds in asset allocation models or shifted to buying ETFs from commission free platforms. SSGA has lost market share to iShares, Vanguard and Schwab as its more expensive products were not well suited to a fee-based approach,” Rosenbluth added.

For more information on new fund products, visit our new ETFs category.

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