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 www.spdrs.com.
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
spdrs.com. Read it carefully.
Not FDIC Insured * No Bank Guarantee * May Lose Value
CORP-1691
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
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