Exchange traded funds (ETFs) provider State Street Global Advisers has cut fees on a number of its SPDR core equity and fixed income ETFs, 14 of which are listed in London. It has also announced plans to list 12 European sector ETFs on the London Stock Exchange by the end of the year.
SPDR says that the reduction in core ETF fees will result in investors on average paying 20 per cent less across these funds with the largest reduction being on IC Top 50 ETF SPDR S&P 500 (SPX5), down from 15 basis points to 9bps.
Another IC Top 50 ETF, SPDR FTSE UK All Share UCITS ETF, is also having its fees cut from 30bps to 20bps.
The fee cuts took effect from 1 October 2014.
SPDR ETF new pricing
Fund | Code | Current fee (%) | New Fee from 01/10/2014 (%) |
SPDR MSCI Emerging Markets UCITS ETF | EMRG | 0.65 | 0.42 |
SPDR MSCI EM Asia UCITS ETF | EMAS | 0.65 | 0.55 |
SPDR MSCI EM Latin America UCITS ETF | EMLA | 0.65 | 0.55 |
SPDR MSCI EM Europe UCITS ETF | EMEO | 0.65 | 0.55 |
SPDR S&P Emerging Markets Dividend UCITS ETF | EMDV | 0.65 | 0.55 |
SPDR MSCI Emerging Markets Small Cap UCITS ETF | EMSM | 0.65 | 0.55 |
SPDR MSCI EM Beyond BRIC UCITS ETF | EMXB | 0.65 | 0.55 |
SPDR MSCI ACWI UCITS ETF | ACWI | 0.5 | 0.4 |
SPDR MSCI ACWI IMI UCITS ETF | ACIM | 0.55 | 0.4 |
*SPDR FTSE UK All Share UCITS ETF | FTAL | 0.3 | 0.2 |
SPDR Barclays Euro High Yield Bond UCITS ETF | JNKE | 0.45 | 0.4 |
SPDR Barclays US Aggregate Bond UCITS ETF | USAG | 0.2 | 0.17 |
SPDR MSCI EMU UCITS ETF | EMUE | 0.3 | 0.25 |
*SPDR S&P 500 UCITS ETF | SPX5 | 0.15 | 0.09 |
Source: SPDR
*IC Top 50 ETF
State Street plans to list 12 of its SPDR ETFs listed on continental European markets in London. The funds are mostly European sector ETFs, offer exposure to specific industry sectors such as industrials or information technology, and use physical replication – buy the shares in the indices they track.
It plans to merge its 13 French domiciled ETFs onto the same platform as its other funds, and so redomicile them in Ireland. If the merger is approved, they will be redomiciled in Ireland from the 8 December and have a primary listing on Euronext Paris – where this is currently. But soon after the 12 following funds will also have a cross listing in London:
ETFs that SPDR plans to list in London
SPDR MSCI Europe Consumer Discretionary UCITS ETF |
SPDR MSCI Europe Consumer Staples UCITS ETF |
SPDR MSCI Europe Energy UCITS ETF |
SPDR MSCI Europe UCITS ETF |
SPDR MSCI Europe Financials UCITS ETF |
SPDR MSCI Europe Health Care UCITS ETF |
SPDR MSCI Europe Industrials UCITS ETF |
SPDR MSCI Europe Information Technology UCITS ETF |
SPDR MSCI Europe Materials UCITS ETF |
SPDR MSCI Europe Small Cap UCITS ETF |
SPDR MSCI Europe Telecommunication Services UCITS ETF |
SPDR MSCI Europe Utilities UCITS ETF |
Source: SPDR
Fund providers such as db X-trackers and Amundi also have ETFs offering exposure to European sectors, for example, the db X-trackers' Stoxx Europe 600 series of ETFs. But these get their exposure via a swap rather than physically buying the shares like the SPDR ETFs. Both the SPDR and db X-trackers Europe sector ETFs have a total expense ratio of 0.3 per cent.