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SPDR cuts fees and plans Europe sector ETF launches

SPDR hopes to list a number of its Europe sector ETFs in London by the end of the year.
October 1, 2014

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

FundCodeCurrent fee (%)New Fee from 01/10/2014 (%)
SPDR MSCI Emerging Markets UCITS ETFEMRG0.650.42
SPDR MSCI EM Asia UCITS ETFEMAS0.650.55
SPDR MSCI EM Latin America UCITS ETFEMLA0.650.55
SPDR MSCI EM Europe UCITS ETFEMEO0.650.55
SPDR S&P Emerging Markets Dividend UCITS ETFEMDV0.650.55
SPDR MSCI Emerging Markets Small Cap UCITS ETFEMSM0.650.55
SPDR MSCI EM Beyond BRIC UCITS ETFEMXB0.650.55
SPDR MSCI ACWI UCITS ETFACWI0.50.4
SPDR MSCI ACWI IMI UCITS ETFACIM0.550.4
*SPDR FTSE UK All Share UCITS ETFFTAL0.30.2
SPDR Barclays Euro High Yield Bond UCITS ETFJNKE0.450.4
SPDR Barclays US Aggregate Bond UCITS ETFUSAG0.20.17
SPDR MSCI EMU UCITS ETFEMUE0.30.25
*SPDR S&P 500 UCITS ETFSPX50.150.09

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.