State Street Global Advisors (SSGA) has reduced the management costs on six of its Australian-based SPDR exchange-traded funds (ETFs), including the company’s SPDR S&P/ASX 50 Fund (SFY).
The announcement follows a similar move made by SSGA late last year when it implemented fee reductions on six other SPDR ETFs, including the firm’s flagship SPDR S&P/ASX 200 Fund (STW).
This time around, the six funds span several asset classes including international equity, Australian equity, listed property and emerging markets.
The firm confirmed that three of the six funds are expected to be the lowest-cost ETF in their respective peer groups, including SPDR S&P World ex Australia Carbon Control Fund, SPDR S&P World ex Australia Carbon Control (Hedged) Fund, and SPDR S&P/ASX 200 Listed Property Fund. Additionally, it said SPDR Dow Jones Global Real Estate ESG Fund is the lowest-cost unhedged global property ETF.
According to SSGA, the newly announced management cost reductions, which are effective as at 1 July, make investing in ETFs more affordable for a broad range of investors.
“We are excited to be able to offer investors some of the most cost-effective ETF offerings in their respective peer groups, with fee reductions announced today up to 0.30 per cent p.a.,” said Meaghan Victor, head of intermediary, Asia Pacific at State Street Global Advisors.
“These fee changes demonstrate our commitment to the democratisation of investing by delivering cost-effective institutional quality investment solutions to all investors.”
SSGA currently offers 17 ETFs on the Australian Securities Exchange (ASX).
Within the past year, fee reductions have also been announced by many of SSGA’s competitors in the Australian market, including Vanguard and VanEck.
Namely, Vanguard’s flagship Australian Shares Index ETF (VAS), the VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA), and VanEck FTSE International Property (Hedged) ETF (ASX: REIT) all saw fee reductions in July 2023.
Earlier this month, Global X issued its own news, declaring the reduction of fees for both its spot bitcoin and Ethereum ETFs.
The fund manager said it is reducing the annual management fees of its Global X 21Shares Bitcoin ETF (Cboe: EBTC) and Global X 21Shares Ethereum ETF (Cboe: EETH), effective 1 July 2024, after it confirmed last month that EBTC had surpassed a record high of $118 million in assets under management.
With competition in the ETF market increasing, SSGA’s equity investment strategist, Julia Lee, noted there are several components that investors should consider when selecting ETFs outside of the cost.
“Australian investors in 2024 have more choice than ever before: they can access a growing number of geographies, sectors, and sustainable investing options through more than 340 exchange-traded products,” said Lee.
“Educating investors and advisers on what to consider when choosing an ETF, such as the total cost of ownership, a provider’s track record, and quality control measures behind the scenes, remain key priorities for State Street Global Advisors,” she said.
The cost cuts announced by SSGA include:
|
ASX Code |
ETF Name |
Management Costs |
|
|
Previous |
New |
||
|
International Equity ETFs |
|||
|
WXOZ |
SPDR® S&P® World ex Australia Carbon Control Fund |
0.18 |
0.07 |
|
WXHG |
SPDR® S&P® World ex Australia Carbon Control (Hedged) Fund |
0.21 |
0.10 |
|
Australian Equity ETFs |
|||
|
SFY |
SPDR® S&P®/ASX 50 Fund |
0.286 |
0.20 |
|
Listed Property ETFs |
|||
|
DJRE |
SPDR® Dow Jones® Global Real Estate ESG Fund |
0.50 |
0.20 |
|
SLF |
SPDR® S&P®/ASX 200 Listed Property Fund |
0.40 |
0.16 |
|
Emerging Markets ETFs |
|||
|
WEMG |
SPDR® S&P® Emerging Markets Carbon Control Fund |
0.65 |
0.35 |
