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Initiative urges investors to look at all aspects of total cost of
ownership, where liquidity is an important consideration

BOSTON–(BUSINESS WIRE)–State Street Global Advisors, the asset management business of State
Street Corporation (NYSE: STT) and creator of the world’s first ETFs,1
today launched a new initiative aimed at educating investors about the
importance of ETF liquidity. The integrated program, which will include
thought leadership, social media promotion and advertising, launched
across the US today and is expected to run through the fourth quarter.

“We want investors to understand that liquidity attributes can have a
significant impact on the total cost of ownership, even though expense
ratio is frequently emphasized,” said Sue Thompson, head of SPDR®
Americas Distribution for State Street Global Advisors.

The first phase of the initiative called “It’s Liquidity Time” will
focus on generating greater awareness of the importance of liquidity and
the impact it can have on trading costs.

“As a leader in ETF liquidity, our strategy is to help investors make
more informed investment decisions based on our deep expertise,” said
Stephen Tisdalle, chief marketing officer of State Street Global
Advisors. “This initiative will educate investors on how their actual
portfolio costs can shift during periods of volatility and feature the
ways investors are incorporating liquidity analysis into their

State Street Global Advisors’ SPDR family of ETFs, like the SPDR S&P 500®
ETF (SPY) and the SPDR Dow Jones® Industrial Average ETF
(DIA), are among the most liquid in the industry comprising nearly half
of all US-listed ETF trading volume2 and include 7 out of the
10 most liquid ETFs invested in US equities.3

Liquidity’s impact on total ETF costs

“Depending on your rebalancing frequency, trading costs can
significantly accumulate and have a larger impact on the total cost of
ownership than any expense ratio difference between two ETFs. This
underscores why liquidity analysis has to be a part of any due diligence
process prior to implementation,” said Matthew Bartolini, CFA, head of
SPDR Americas Research for State Street Global Advisors.

As an example, for sector rotation strategies with a monthly rebalance,
the liquidity profile of the sector ETF used can dramatically affect the
total cost of the strategy over a one-year period. The table below
illustrates how an ETF with a higher expense ratio can be the more cost
effective option after accounting for trading costs. The less liquid,
lower fee fund actually ends up being 73 percent more expensive than the
more liquid, higher expense ratio sector ETF after a full year.

ETF Type   Average Gross Expense Ratio %   Average Bid/Ask Spread %   Trading costs for two trades a month   Total Cost Average over One Year
More liquid   0.13   0.02   0.04   0.59
Less liquid   0.10   0.04   0.08   1.02

Source: Bloomberg Finance, L.P., SPDR Americas Research, as of March 31,
2019. For illustrative purposes only. The information above does not
reflect individual purchases and sales of funds.

For more information on the different use cases that are additive to an
ETF’s liquidity profile, including options and short-selling, please
visit State Street Global Advisors is uniquely
adept at understanding liquidity given SPDR ETFs make up nearly half of
all US-listed ETF trading volume, have the most options open interest,
and are the most heavily shorted suite.4

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international
and domestic asset classes. SPDR ETFs are managed by SSGA Funds
Management, Inc., a registered investment adviser and wholly owned
subsidiary of State Street Corporation. The funds provide investors with
the flexibility to select investments that are aligned to their
investment strategy. Recognized as an industry pioneer, State Street
created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and
has remained on the forefront of responsible innovation, as evidenced by
the introduction of many ground-breaking products, including
first-to-market launches with gold, international real estate,
international fixed income, and sector ETFs. For more information, visit

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world’s
governments, institutions and financial advisors. With a rigorous,
risk-aware approach built on research, analysis and market-tested
experience, we build from a breadth of active and index strategies to
create cost-effective solutions. As stewards, we help portfolio
companies see that what is fair for people and sustainable for the
planet can deliver long-term performance. And, as pioneers in index,
ETF, and ESG investing, we are always inventing new ways to invest. As a
result, we have become the world’s third largest asset manager with
nearly US $2.80 trillion* under our care.

* This figure is presented as of March 31, 2019 and includes
approximately $33 billion of assets with respect to SPDR products for
which State Street Global Advisors Funds Distributors, LLC (SSGA FD)
acts solely as the marketing agent. SSGA FD and State Street Global
Advisors are affiliated.

Important Risk Information:


Investing involves risk, including the risk of loss of principal.

Equity securities may fluctuate in value in response to the activities
of individual companies and general market and economic conditions.

While the shares of ETFs are tradable on secondary markets, they may not
readily trade in all market conditions and may trade at significant
discounts in periods of market stress.

ETFs trade like stocks, are subject to investment risk, fluctuate
in market value and may trade at prices above or below the ETFs net
asset value. Brokerage commissions and ETF expenses will reduce returns.

State Street Global Advisors and its affiliates (“SSGA”) have not
taken into consideration the circumstances of any particular investor in
producing this material and are not making an investment recommendation
or acting in fiduciary capacity in connection with the provision of the
information contained herein.

Standard & Poor’s, S&P and SPDR are registered trademarks of Standard &
Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow
Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow
Jones); and these trademarks have been licensed for use by S&P Dow Jones
Indices LLC (SPDJI) and sublicensed for certain purposes by State Street
Corporation. State Street Corporation’s financial products are not
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and third party licensors and none of such parties
make any representation regarding the advisability of investing in such
product(s) nor do they have any liability in relation thereto, including
for any errors, omissions, or interruptions of any index.

Distributor: State Street Global Advisors Funds Distributors,
LLC, member FINRA, SIPC. ALPS Distributors, Inc., member FINRA, is the
distributor for SPY and DIA, all unit investment trusts. ALPS
Distributors, Inc. is not affiliated with State Street Global Advisors
Funds Distributors, LLC.

Before investing, consider the fund’s investment objectives, risks,
charges and expenses. To obtain a prospectus or summary prospectus which
contains this and other information, call 866.787.2257 or visit Read it carefully.

The whole or any part of this work may not be reproduced, copied or
transmitted or any of its contents disclosed to third parties without
SSGA’s express written consent.

© 2019 State Street Corporation – All Rights Reserved

Not FDIC Insured • No Bank Guarantee • May Lose Value



Expiration date: 4/30/2020

1 ETFs managed by State Street Global Advisors have the
oldest inception dates within the US, Hong Kong, Australia and Singapore
(State Street Global Advisors launched the first ETF in the US on
January 22, 1993, launched the first ETF in Hong Kong on November 11,
1999, launched the first ETF in Australia on August 24, 2001, and
launched the first ETF in Singapore on April 11, 2002).
Bloomberg Finance LP, as of 03/8/2019. Based on 180 day dollar trading
volume. Past performance is not a guarantee of future results.
Bloomberg Finance LP, as of 03/8/2019. Based on 180 day dollar trading
volume and geography focus of US Equities. Past performance is not a
guarantee of future results.
4 Bloomberg Finance LP, as
of 03/8/2019 based upon the open interest notional amounts of all
options contracts tied to ETFs, grouped by ETF issuer.


Olivia Offner
+1 617-662-0198
[email protected]