State Street Global Advisors (SSGA) has launched three single-country advanced beta SPDR exchange-traded funds, which aim to represent the performance of a combination of three factors: quality, value and low volatility.
The objective is to give investors improved risk-adjusted return potential when investing in single-country markets.
The new ETFs add to the existing nine multi-factor SPDR MSCI Quality Mix ETFs that were launched in June 2014.
The three new ETFs, which began trading on the NYSE Arca as of 18 September 2014 are:
• SPDR MSCI Mexico Quality Mix ETF (QMEX)
• SPDR MSCI South Korea Quality Mix ETF (QKOR)
• SPDR MSCI Taiwan Quality Mix ETF (QTWN)
“Our new SPDR MSCI Quality Mix ETFs provide investors with an opportunity to fine-tune their international exposure with a single-country portfolio that captures multiple investment themes,” says James Ross, executive vice president and global head of SPDR ETFs at State Street Global Advisors. “Multi-factor advanced beta strategies combine factor tilts that can help achieve diversification by using factors that have shown negative or low correlation. These exposures are appealing to investors as they can behave differently in similar market environments in terms of risk and return.”
The three new SPDR MSCI Quality Mix ETFs feature an expense ratio of 0.40 per cent.