State Street Global Advisors is starting to use Solactive indices as the underlying indices for five members of the SPDR ETF family.
The indices tracked are part of Solactive’s newly launched Global Benchmark Series. Each index covers the top 85 per cent of the corresponding equity market in terms of free float market capitalisation. The consideration of strict liquidity criteria ensures the tradability of the assets linked to each benchmark index.
The indices are rebalanced on a semi-annual basis in May and November with additional IPO reviews in February and August. Buffer rules are applied to prevent undesired high index turnover. The indices are weighted by free-float market capitalisation and are calculated in US-Dollar.
The SPDR ETFs, which are switching from MSCI indices, are: SPDR Solactive Canada ETF (QCAN) – Solactive GBS Canada Large & Mid Cap Index; SPDR Solactive Germany ETF (ZDEU) – Solactive GBS Germany Large & Mid Cap Index; SPDR Solactive Japan ETF (ZJPN) – Solactive GBS United Kingdom Large & Mid Cap Index; SPDR Solactive United Kingdom ETF (ZGBR) – Solactive GBS Japan Large & Mid Cap Index; and SPDR Solactive Hong Kong ETF (ZHOK) – Solactive GBS Hong Kong Large & Mid Cap Index.
Steffen Scheuble, CEO at Solactive AG, commented: “I am very pleased to start working with State Street Global Advisors as one of the top three leading asset managers globally. The switch demonstrates a great deal of trust in our services and the quality of the team’s hard work which makes me very proud.”