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 December 2, 2015 - 8:45 AM EST
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State Street Global Advisors Launches First S&P 500 Fossil Fuel Free ETF

SPDR® S&P 500® Fossil Fuel Free ETF Provides Core Equity Exposure to Investors Seeking Divestment from Fossil Fuel Reserves

State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), announced that the SPDR S&P 500 Fossil Fuel Free ETF (SPYX) began trading on the NYSE Arca. This new addition to SSGA’s Environmental, Social and Governance (ESG) line-up is designed to help investors seeking to eliminate fossil fuel reserves from their portfolio while maintaining exposure to the core of the S&P 500 Index.

"Motivated by concerns surrounding climate change, a growing number of our clients are seeking solutions that can help them divest from fossil fuel reserves while maintaining their strategic asset allocations," said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at SSGA. "With the launch of SPYX, investors may be able to divest their US large cap allocations from fossil fuel reserves while benefitting from the liquidity, transparency and convenience of an ETF."

The SPDR S&P 500 Fossil Fuel Free ETF (SPYX) was developed with the support of the Natural Resources Defense Council (NRDC) to meet the needs of climate conscious investors. NRDC is a cornerstone investor in the fund, having found it to be an effective tool to invest in S&P 500 companies that do not own fossil fuel reserves.

The SPDR S&P 500 Fossil Fuel Free ETF seeks to track the performance of the S&P 500 Fossil Fuel Free Index. The Index measures the performance of companies in the S&P 500 Index that are “fossil fuel free,” which are defined as companies that do not own fossil fuel reserves. For purposes of the composition of the Index, fossil fuel reserves are defined as economically and technically recoverable sources of crude oil, natural gas and thermal coal but do not include metallurgical or coking coal, which are used in connection with steel production. In constructing the Index, the initial universe of stocks is screened to exclude companies with any ownership in fossil fuel reserves, including for third party and in-house power generation, as determined by publicly available information. The Index included 475 securities as of September 30, 2015. The SPDR S&P 500 Fossil Fuel Free ETF’s gross expense ratio is 0.25 percent and its net expense ratio is 0.20 percent.1

"SPYX, which is the first S&P 500 Fossil Fuel Free ETF, is an important addition to State Street's $186.12 billion2 of ESG investment strategies, which we began managing in 1986," said Christopher McKnett, managing director and head of Environmental, Social and Governance at SSGA. "SPYX will allow climate aware investors the potential to match their investment strategy and financial interests with their environmental values."

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit

About State Street Global Advisors

For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.

State Street Global Advisors is the investment management arm of State Street Corporation.

*Assets under management were $2.2 trillion as of September 30, 2015. Assets under management include approximately $25 billion as of September 30, 2015, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.

Concentrated investments in a particular industry or sector may be more vulnerable to adverse changes in that industry or sector.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.

No fossil fuel reserve ownership may have an adverse effect on a company’s profitability and, in turn, the returns of the fund.

Passively managed funds hold a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.

Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.

Before investing, consider the fund’s investment objectives, risks, charges and expenses, which are described in the fund’s prospectus. To obtain a prospectus or summary prospectus which contains information regarding these risks and other information, call 866.787.2257 or visit Read it carefully.

Not FDIC Insured * No Bank Guarantee * May Lose Value


1 SSGA Funds Management, Inc. (“Adviser”) has contractually agreed to waive its advisory fee and/or reimburse certain expenses, until October 31, 2017, so that the net annual fund operating expenses of the Fund will be limited to 0.20% of the Fund’s average daily net assets before application of any fees and expenses not paid by the Adviser under the Investment Advisory Agreement (except for acquired fund fees and expenses from holdings in acquired funds for non-cash management purposes), if any. The contractual fee waiver and/or reimbursement does not provide for the recoupment by the Adviser of any fees the Adviser previously waived. The Adviser may continue the waiver and/or reimbursement from year to year, but there is no guarantee that the Adviser will do so and the waiver and/or reimbursement may be cancelled or modified at any time after October 31, 2017. This waiver and/or reimbursement may not be terminated prior to October 31, 2017 except with the approval of the Fund’s Board of Trustees.

2 SSGA: 9/30/2015

State Street Corporation
Andrew Hopkins, +1 617-664-2422
Troy Mayclim, +1 914-686-5552

Source: Business Wire (December 2, 2015 - 8:45 AM EST)

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