Arachnophobes beware, State Street Global Advisors is releasing more "SPDRs" -- its brand of exchange-traded funds, onto the market.
State Street Global Advisors, or SSgA, added three sector SPDRs -- short for Standard & Poor's Depository Receipts and commonly known as "spiders" -- to its lineup. The
all started trading on the American Stock Exchange Monday morning.
The ETFs track the performance of specific industries and are benchmarked against the Standard & Poor's Select Industry Indices. Each index is constructed with an equal-weighted methodology and is rebalanced quarterly in order to prevent a few select stocks from dominating the performance of the index. The expense ratio for each ETF is 35 basis points.
"The biotechnology, home construction and semiconductor industries have in recent years been key growth drivers or leading indicators of the U.S. economy," says Greg Ehret, co-head of SSgA's Advisor Strategies unit. "With professional investors seeking to inject higher return potential into their portfolios, these new SPDRs are uniquely designed so that investors gain the most direct exposure to their respective industries."
The latest offering from SSgA, the investment management arm of
State Street Corp.
, follows its November launch of nine new ETFs, including the
Dow Jones Wilshire Style ETFs
KBW Sub-Sector ETFs
SSgA currently has more than $94 billion in ETF assets under management and is the second-largest provider of ETFs behind Barclay's Global Investors, with $170 billion. State Street introduced the first ETF, the
, in 1993.