BOSTON--(BUSINESS WIRE)--
State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the Communication Services Select Sector SPDR Fund (XLC). The fund will provide exposure to the new Communication Services sector, unveiled by S&P Dow Jones Indices and MSCI Inc., following the annual review of the Global Industry Classification Standard (GICS) structure in November 2017.
The reclassification of the GICS structure will transform the existing Telecommunications Services sector, expanding it to include selected companies from the Information Technology and Consumer Discretionary sectors. It will be renamed Communication Services effective September 21, 2018.
In addition to the fund launch of XLC, in accordance with the constituent changes under the GICS reclassification for the existing Information Technology and Consumer Discretionary sectors, State Street Global Advisors is announcing that it will rebalance the Technology Select Sector SPDR Fund (XLK) and the Consumer Discretionary Select Sector SPDR Fund (XLY) to reflect the underlying index changes, such changes to be effective after the close on September 21, 2018.
“State Street Global Advisors always seeks to provide investors with the tools necessary to implement sector views across the entire GICS framework,” said Noel Archard, global head of product for State Street ETFs. “The launch of XLC allows our clients immediate access to this new investment opportunity that will represent roughly 10 percent of the S&P 500 Index in terms of market capitalisation.”
With the launch of XLC, State Street Global Advisors’ suite of US-listed sector-based SPDR® ETF solutions includes 33 funds with $168 billion in assets as of June 12, 2018.
“Existing shareholders of XLK and XLY do not need to take action at this time; however, investors will likely want to analyze their sector positions. Given our heritage as a creator of the World’s first ETFs1, and the breadth of our insights and data, we are prepared to help investors navigate these changes by leveraging our capabilities as a steward of $2.73 trillion in assets under management and 25 years of managing ETFs,” added Archard.
To learn more about State Street Global Advisors’ suite of US-listed select sector ETFs, click here.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit www.spdrs.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third largest asset manager with nearly US $2.73 trillion* under our care.
*This figure is presented as of March 31, 2018 and includes approximately $56 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
All ETFs are subject to risk, including possible loss of principal. Sector ETF products are also subject to sector risk and non-diversification risk, which generally result in greater price fluctuations than the overall market.
Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds.
Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.
Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Portfolio Solutions Distributor, Inc. is distributor for Select Sector SPDRs. ALPS Portfolio Solutions Distributor, Inc. is not affiliated with State Street Global Advisors Funds Distributors, LLC.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, visit spdrs.com to download a prospectus or summary prospectus or call 800.997.7327. Read it carefully before investing.
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1 Important Disclosure: ETFs managed by State Street Global Advisors have the oldest inception dates within the US, Hong Kong, Australia, and Singapore. State Street Global Advisors launched the first ETF in the US on January 22, 1993; launched the first ETF in Hong Kong on November 11, 1999; launched the first ETF in Australia on August 24, 2001; and launched the first ETF in Singapore on April 11, 2002.
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