Close Close
ThinkAdvisor

Portfolio > ETFs

State Street to Liquidate 10 ETFs: Portfolio Products

By Jeff Berman

X
Your article was successfully shared with the contacts you provided.

State Street Global Advisors plans to liquidate 10 exchange-traded funds based on an ongoing review of SPDR ETF offerings.

The ETFs being liquidated include six focusing on foreign stocks: the SPDR Solactive Canada ETF (ZCAN), SPDR Solactive Germany ETF (ZDEU), SPDR Solactive United Kingdom ETF (ZGBR), SPDR Solactive Hong Kong ETF (ZHOK), SPDR Solactive Japan ETF (ZJPN) and SPDR EURO STOXX Small Cap ETF (SMEZ).

Three of the ETFs are focused on U.S. stocks: the SPDR Dorsey Wright Fixed Income Allocation ETF (DWFI), SPDR MFS Systematic Core Equity ETF (SYE), SPDR MFS Systematic Growth Equity ETF (SYG), SPDR MFS Systematic Value Equity ETF (SYV), and one is a bond ETF that includes both U.S. and foreign government and corporate bonds, the SPDR Dorsey Wright Fixed Income Allocation ETF (DWFI).

The final day for creations and redemptions in each liquidating ETF will be March 17 and trading will be suspended on the principal U.S. listing exchange for each ETF as of  the market open on March 18. Proceeds of the liquidation are scheduled to be sent to shareholders remaining on or about March 24.

“As a matter of good business practice, we routinely evaluate our ETF offerings,” a company spokeswoman said Monday. “The decision to close the funds was made based on investor feedback and market demand after a review of the SPDR ETF offering.”

SEI Introduces Core Direct Indexing Strategies for Advisors

SEI introduced Systematic Core Strategies that it says are designed to “modernize the traditional structure of passive investing by directly purchasing a subset of individual stocks within a broad market index.”

A goal of the SEI Systematic Core Strategies is “to give independent advisors a cost-effective way to provide their clients with greater transparency and tailored solutions that best suit their financial goals and sustainable investing priorities,” the company says.

The strategies include the Systematic U.S. Large Cap Core Strategy that tracks the Russell 1000 Index with about 150 underlying securities; the Systematic U.S. All Cap Core Strategy that tracks the Russell 3000 Index with about 250 underlying securities; and the Systematic International Developed Core (ADR) Strategy that tracks the MSCI EAFE Index with about 150 underlying securities.

Through individual stock ownership, the strategies are designed to provide cost-effective, broad equity exposure; active tax management; flexible investment implementation; and control and personalization. Independent advisors, for example, can offer sustainable investment screening (environmental, social and corporate governance; socially responsible investing and faith-based) to align with a client’s priorities.

Morgan Creek Teams With EXOS on SPAC ETF

Asset manager Morgan Creek Capital Management and fintech firm EXOS Financial launched the Morgan Creek – Exos SPAC Originated ETF (SPXZ), which trades on the NYSE Arca and has a net expense ratio of 1.00%.

The actively managed ETF features an investment strategy focused on special purchase acquisition companies (SPACs) and the public companies born from them.

SPXZ seeks to provide investors with liquid, transparent, actively managed exposure to a portfolio of innovative companies that go public via SPAC mergers, the companies say. The fund expects to hold about two-thirds of its capital in an equal dollar-weighted portfolio of the largest companies to have completed SPAC mergers over the past three years, and approximately one-third of its capital in an equal dollar weighted portfolio of pre-combination SPACs.

DWS Makes Changes to 2 Xtrackers ETFs

Asset manager DWS s changed the names of two Xtrackers ETFs to better reflect their multifactor underlying strategies.

The Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS), with a net expense ratio of 0.17%, and the Xtrackers FTSE Developed ex US Comprehensive Factor ETF (DEEF), with a net expense ratio of 0.24%, have changed their names to the Xtrackers Russell US Multifactor ETF and Xtrackers FTSE Developed ex US Multifactor ETF, respectively.

The name changes have no impact on the ETFs’ investment objectives, policies, investment strategies or ticker symbols. They both remain listed on the NYSE.

The new names reflect the fact that the term “multifactor” has fallen into common usage as factor investing has become more popular within the investment community, according to DWS.

The name change on the Xtrackers Russell 1000 Comprehensive Factor ETF to the Xtrackers Russell US Multifactor ETF is expected to help clarify for investors that the size factor within the methodology tends toward mid-cap securities, whereas the Russell 1000 Index is comprised primarily of large-cap stocks.

ProShares Introduces its First Leveraged Thematic ETFs

ProShares launched its first leveraged thematic investing ETFs: the ProShares Ultra Nasdaq Cybersecurity (UCYB), with a net expense ratio of 0.98%, and the ProShares Ultra Nasdaq Cloud Computing (SKYU), with a net expense ratio of 0.95%. Both are listed on the Nasdaq.

UCYB seeks investment results, before fees and expenses, that correspond to two times the daily performance of the Nasdaq CTA Cybersecurity Index. SKYU seeks investment results, before fees and expenses, that correspond to two times the daily performance of the ISE CTA Cloud Computing Index.

UCYB’s index provides access to companies classified as “cybersecurity” by the Consumer Technology Association, while SKYU’s index provides access to companies classified as “cloud computing” by the CTA.

— Check out last week’s portfolio product roundup here: Vanguard U.S. Value Fund to Merge Into Value Index Fund: Portfolio Products

Jeff Berman

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.