The first exchange-traded funds born out of a partnership between State Street Global Advisors (SSgA) and MFS Investment Management are now trading on NYSE Arca.
The SPDR MFS Systematic Core Equity ETF (SYE), SPDR MFS Systematic Value Equity ETF (SYV) and SPDR MFS Systematic Growth Equity ETF (SYG) offer MFS’ stock selection and portfolio construction process in an ETF structure.
“We are pleased to be working with MFS to provide a broader universe of investors with access to strategies that deliver active security selection with a focus on managing downside risk,” says James Ross, executive vice president and global head of SPDR ETFs at State Street Global Advisors. “The partnership is further evidence of our commitment to working closely with best-in-class asset managers to build on the SPDR ETF line-up and offer active strategy solutions to help investors achieve better investment outcomes.”
The SPDR MFS Systematic Core Equity ETF (benchmark: S&P 500 Index), SPDR MFS Systematic Value Equity ETF (Russell 1000 Value Index) and SPDR MFS Systematic Growth Equity ETF (Russell 1000 Growth Index) are all designed to seek to outperform their respective benchmarks over a full market cycle by applying a consistent, disciplined bottom-up stock selection and portfolio construction process.
The selection process is a systematic combination of MFS fundamental and quantitative research.
“Our approach to combining fundamental and quantitative research utilizes a varied approach to help investors find returns,” says Michael Roberge, president and chief investment officer of MFS. “We look forward to working closely with State Street, a pioneer in the ETF industry, to help a growing universe of investors enhance their asset allocation strategies with this new suite of actively managed SPDR ETFs.”
The ETFs, which feature expense ratios of 0.60 per cent, are managed by members of the MFS quantitative solutions team. Matthew Krummell has managed client portfolios since joining MFS in 2001 as a quantitative equity research analyst. Jonathan Sage joined MFS in 2000 as a quantitative equity research analyst and was named a portfolio manager in 2005.