State Street Cuts Expense Ratios of 10 ETFs

News August 01, 2023 at 11:30 AM

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State Street Global Advisors says it has dropped the total expense ratios (TERs) for 10 funds in its suite of SPDR Portfolio ETFs, effective today.

The changes include a cut from 3 basis points (bps) to 2 for the SPDR Portfolio S&P 500 ETF. For the SPDR Portfolio Emerging Markets ETF, the expense fell from 11 basis points to 7; it declined from 10 to basis points to 5 for the SPDR Portfolio High Yield Bond ETF.

Chart showing new State Street expenses for 10 ETFs

The SPDR Portfolio ETFs' median cost is now 95% less expensive than the median cost of a U.S.-domiciled mutual fund, according to the asset manager.

Over a decade, a portfolio invested at the median U.S.-domiciled mutual fund costs would have lost 8.2% of starting principal to higher fees, State Street said.

"Low-cost ETFs are attractive to buy-and-hold investors who want to limit the impact of fees on the long-term performance of their portfolios," said Sue Thompson, who heads SPDR Americas Distribution at State Street Global Advisors.

"With 22 funds across a broad range of asset classes, SPDR Portfolio ETFs are designed to help investors build resilient and diversified portfolios that allow them to keep more of what they earn," Thompson explained.

"In fact, in the last two years, State Street Global Advisors has reduced expense ratios on 20 ETFs across our U.S. line up, demonstrating our commitment to the democratization of investing by delivering institutional quality investment solutions at competitive price points," she added.

State Street says its total level of assets is $3.8 trillion, with $63 billion in SPDR products.

(Image: Bloomberg)

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