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An ETF issuer proposes expanded range of SPDR® ETFs in Australia

5 AUSTRALIA

An ETF issuer will soon launch three SPDR® ETFs in the Australian market, expanding its market-leading suite of existing ETFs…


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              The new ETFs, expected to launch in April, will focus on two of the fastest-growing sectors in the market – resources and financials – while the third will offer exposure to less mature, small capitalisation companies with the potential for higher growth and returns.

               

              Jim Ross, senior managing director of SSgA and Global Head of SPDR ETFs commented: “With an estimated US$1.4 trillion in global funds under management, ETFs are being embraced by an increasing number of investors looking for transparent, easy-to-trade and low-cost investment solutions.”

               

              “Australia is an extremely competitive and sophisticated market which has supported SSgA’s products since we launched the first ETF here – the SPDR S&P/ASX 200 – in 2001. SSgA is determined to retain leadership in Australia with a strong suite of ETF products which meet the portfolio needs of retail and institutional customers,” he added.

               

              Rob Goodlad, senior managing director of SSgA in Australia, said: “The three new SPDR ETFs by SSgA are intended to give investors more choice from within the SPDR range of products at a time when local demand for ETFs has shown steady growth.”

               

              “The new SPDR funds will offer more precise exposure to two of the market’s dominant segments, while small caps are an acknowledged growth sector,” he said. “They will enable investors to customise their portfolios while retaining a conservative, index-linked framework.”

               

              “These new SPDRs are a welcome addition to the growing global SPDR family as we continue to launch products offering investors a wider range of options but without compromising on the quality of our offering,” he added.

               

              SPDR ETFs is the largest ETF provider in Australia with more than $2.98 billion in funds under management at February 28, 2011, which represents about 66 percent of the total FUM for the entire Australian ETF market of $4.5 billion, according to ASX Listed Managed Investments statistics.

               

              The four SPDR ETFs already offered in Australia are: the SPDR S&P/ASX 200 Fund (STW), the SPDR S&P/ASX 50 Fund (SFY), the SPDR S&P/ASX Listed Property Fund (SLF) and the SPDR MSCI Australia Select High Dividend Yield Fund (SYI).

               

              The new products are expected to begin trading on the ASX on April 13, 2011 following the issue of a product disclosure statement for each ETF, which is expected to be made available on or around 30 March 2011 by State Street Global Advisors, Australia Services Limited.¹


              1The three new ETFs are SPDR S&P/ASX Small Ordinaries Fund (ARSN 149 869 992), SPDR S&P/ASX 200 Resources Fund (ARSN 149 870 002) and SPDR S&P/ASX 200 Financials EX A-REIT Fund (ARSN 149 870 020). The issuer of units in each of the new ETFs is State Street Global Advisors, Australia Services Limited (ABN 16 108 671 441, Australian financial services licence number 274900). A product disclosure statement for units in each ETF will be made available at www.spdrs.com.au when it is lodged with ASIC (expected to be on or around [30 March] 2011). Investors should consider the product disclosure statement in deciding whether to acquire, or continue to hold, units in an ETF. The date of initial quotation for units in each of new SPDR ETFs is expected to be on or around 13 April 2011.

               

              Source: ETFWorld – State Street Global Advisors (SSgA)

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