The SPDR MSCI Europe Value Weighted UCITS ETF, SPDR MSCI Value Weighted UCITS ETF, SPDR MSCI Europe Small Cap Value UCITS ETF, and SPDR MSCI USA Small Cap Value Weighted UCITS ETF track the MSCI Value Weighted Indicies.
The four exchange traded funds listed on the Deutsche Borse, Xetra today.
They follow a methodology that reweights all stocks from the parent indicies based on sales, book value, earnings, and cash earnings.
Using these four financial metrics, the ETFS target stocks with the lowest valuation characteristics.
Alexis Marinof, head of SPDR ETFs for Europe, Middle East and Africa, said: “The growth of advanced beta has been huge over the past decade with global assets increasing fivefold since 2008.
“Investors are looking for new ways to access sources of return while managing equity market risk. Advanced beta strategies, which seek to isolate factors that have been shown to outperform standard market cap-weighted indicies over time, respond directly to this demand.
“These new funds allow investors to gain exposure to the value premium across large, mid or small-cap exposures in both the US and Europe, while benefiting from the liquidity, transparency, and flexibility of ETFs.”
Last October, State Street launched what it claimed to be the world’s first passive global convertible bond ETF.
