Written by David Fabian, October 24th, 2017
The investment management fee wars just escalated to a new level with the announcement that State Street is dropping expenses and re-naming 15 of its diversified exchange-traded funds. This transformed group will be dubbed the “SPDR Portfolio” series and is aimed squarely at the likes of Vanguard, BlackRock, and Charles Schwab in testing the ultimate boundaries of minimalist fund costs.
The new average expense ratio across all 15 SPDR portfolio ETFs is an astounding 0.06%, with several offerings being listed for as low as 0.03%. That’s just $30 per year in embedded expenses for every $100,000 invested and marks a strong advancement for ETF portfolio construction. State Street has also partnered with TD Ameritrade to make these funds commission-free to trade on their brokerage platform, further maximizing the total return of these funds for shareholders.
Read the complete article at NASDAQ.com
Written by David Fabian, July 13th, 2016
The biggest and most heavily-traded ETFs are often the ones that investors default to for stock exposure. The most obvious benefits are liquidity, low-cost, and flexibility to be either long or short the market in size.
For traders, the clear favorites are the SPDR S&P 500 ETF (SPY) and PowerShares QQQ (QQQ). Both of these funds provide broad-based exposure to a wide range of stocks in a single investment vehicle. They are also two of the most heavily traded ETFs in the market on a daily basis. This makes them exceptional tools as either core holdings or tactical trading vehicles. Read more
Written by David Fabian, April 13th, 2016
The financial sector has been one of the notable disappointments in the market over the last several years. The hype was that many of these companies would thrive as the United States exits years of zero interest rate policy. However, several months after the first rate hike, we have yet to see a trend change take shape. In fact, it looks like investors in financial stocks are still anticipating that the worst is yet to come. Read more
Written by David Fabian, February 05th, 2016
State Street has had a tremendous advantage in the exchange-traded fund world by being the first issuer of dedicated sector funds. Their highly successful SPDR sector series debuted in 1998 and has spent nearly two decades building a world-class reputation. Everyone from professional to novice investors respect SPDR ETFs for their liquidity, transparency, low-costs, and tax efficiency. Read more
Written by David Fabian, September 24th, 2013
Utility stocks have been significantly underperforming the market since interest rates began rising in May. These dividend-paying machines have been mired in a sideways trading range while the broader market has continued to hit new highs. However, last week’s Fed announcement that it was going to stay the course with its unending supply of quantitative easing has boosted demand for this defensive sector. The stabilization in interest rates likely has much to do with the upward surge of momentum for utilities, combined with investors pouring back into a market segment that is attractive from a valuation standpoint.