State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), has launched three new US smart beta ETFs.
Designed to serve as core portfolio building blocks that may help investors improve their risk-adjusted returns, these SPDR ETFs represent smart beta strategies that may offer income generation, low volatility and alpha potential.
The three new ETFs, which all trade on the NYSE Arca, are: SPDR Russell 1000 Yield Focus ETF (ONEY); SPDR Russell 1000 Momentum Focus ETF (ONEO); and SPDR Russell 1000 Low Volatility Focus ETF (ONEV).
“The adoption of smart beta strategies has been one of the most powerful trends in investing over the recent years and investors are now rethinking their core exposures to leverage approaches that seek to bridge the gap between active and passive,” says James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “In providing a new approach to factor investing that can help capture prevailing investor objectives, ONEY, ONEO and ONEV represent an exciting new chapter in the evolution of smart beta ETFs.”
These three new smart beta ETFs were developed with the Alaska Permanent Fund Corporation (APFC) as a cornerstone investor in the funds.
The ETFs are designed to track the performance of rules based indexes from FTSE Russell. The Russell 1000 Focus ETFs are designed for investors who want to tailor their specific risk and return objectives while maintaining a core position within US equities. The objectives include looking for yield (ONEY), growth potential (ONEO) or low volatility (ONEV).
