Spdr ETF

By: EconomyWatch   Date: 30 July 2009

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The SPDR ETF is a share of an assortment of various exchange traded funds managed by the State Street Global Advisors (SSgA). These ETFs are traded in the US and are informally called Spyders or Spiders. SPDRis the trademark of McGraw-Hills Companies, Inc.

 

History of the Company that made SPDR ETFs

 

The State Street Global Advisors (SSgA) is the investment management division of State Street Corporation and is the world’s largest institutional asset manager. It invented the SPDR ETF in 1993.

 

State Street Corporation’s aim of global expansion led them to create SSgA in 1990. This division started working from London and, between 1994 and 2006, SSgA spread its centers to:

  • Brussels

  • Hong Kong

  • Toronto

  • Paris

  • Sydney

  • Tokyo

  • Dubai

  • San Francisco

  • Montreal

  • Atlanta

  • Munich

  • Zürich

  • Santiago

  • Singapore

  • Chicago

  • Milan

  • Melbourne

 

History of the SPDR ETF

 

The name SPDR came from the first ETF that SSgA invented, ‘Standard & Poor's Depositary Receipts.’ This ETF was launched on January 29, 1993. It went on to becoming the biggest ETF in the US and has been designed to follow the S&P 500 index. These funds operate as unit investment trusts, offering a fixed portfolio of securities with a fixed life.

 

After the success of SPDR, SSgA re-branded all its other ETFs as SPDRs. This included the ‘StreetTRACKS’ ETFs and Dow Diamonds, which tracked the Dow Jones Industrial Average, another stock market index.

 

This move united 23 ETFs in 2007 and since then, the popularity of these SPDR ETFs has risen manifolds.

 

The Various Kinds of SPDR ETFs
 

SPDR ETFs have been classified into various classes on the basis of:

  • Sectors

  • Commodities

  • Regions

 

The various SPDR ETFs are:

  • SPDRs "spiders"

  • SPDR Gold Shares

  • Financial Select Sector SPDR

  • MidCap SPDRs

  • Energy Select Sector SPDR

  • Technology Select Sector SPDR

  • Consumer Staples Select Sector SPDR

  • Health Care Select Sector SPDR

  • Utilities Select Sector SPDR

  • Industrial Select Sector SPDR

 

SSgA launched three SPDR branded ETFs in Australia as well. These were:

  • S&P/ASX 50 Fund (50 top market cap stocks) SFY

  • S&P/ASX 200 Fund (200 top market cap stocks) STW

  • S&P/ASX 200 A-REIT Property Fund (200 Listed Property Fund)

 

SSgA launched other SPDR ETFs in other countries. All these SPDR ETFs can be bought as simply as normal ETFs.

 

 


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