The re-domiciled ETFs, including SPDR AEX Index UCITS and SPDR MSCI Europe Consumer Discretionary UCITS, are to move onto a single, centralised structure in Ireland and will issue and settle via an international central securities depository (ICSD) through Euroclear.
State Street Global Advisors said the benefits of this structure included reduced operational costs and risks, improved liquidity, tightened bid-ask spreads and the creation of a simpler, more precise process for all parties.
The reduction in fees will result in investors, on average, paying 20% less across the 15 ETFs with the largest reduction being made on the SPDR S&P 500, down from 15 basis points to nine basis points as of 1 October 2014.
Alexis Marinof, head of SPDR ETFs for Europe, Middle East and Africa (EMEA), said in recent times, the popularity of ETFs as an asset class had increased considerably and that “the changes are aimed at providing our clients with an enhanced offering that matches their needs as well as the needs of a maturing European marketplace”.
State Street Global Advisors created the first ETF in 1993 and as at 30 June it managed more than $410bn in over 220 ETFs worldwide.
