Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

SSGA takes lead in battle for lowest fee ETF

SSGA takes lead in battle for lowest fee ETF

State Street Global Advisors (SSGA) has cut fees on 15 of its exchange traded funds (ETF) to the ultra-low level of 0.03%, helping it surpass Vanguard as the lowest cost offering on the market.

Vanguard, which is the second largest ETF provider in the world after BlackRock’s iShares, previously offered the cheapest ETF, with its S&P 500 product carrying an annual fee of 0.04%.

State Street has applied the fee changes to 15 of its existing funds, covering $11 billion of assets under management.

In order to cut costs to these levels, three of the funds have been moved from external benchmarks to in-house indexes. (See table 1)


‘We are truly excited to be able to offer ultra-low-cost ETFs to investors. Since launching SPY nearly 25 years ago, State Street Global Advisors has continually looked for opportunities to help investors build better portfolios with ETFs,’ said Nick Good, co-head of the Global SPDR business at SSGA.

‘Investors have been asking us to provide these solutions to offer them a greater choice for low cost ETFs. The launch of the SPDR Portfolio ETFs provides a solution that meets this growing demand.’

 

SSGA 15 lower fee ETFs will be available under new tickers. (See table 2)

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter