State Street Global Advisors, the asset management business of State Street Corporation, has announced changes to the indices and names of five financial industry SPDR ETFs.
Effective Monday, the five SPDR ETFs will no longer track KBW indices and will instead seek to track S&P industry indices that provide access to the same market segments and in addition offer broader diversification and reduced concentration risk. The funds' ticker symbols and expense ratios will remain unchanged, the firm said.
The changes will affect the following SPDR ETFs: SPDR KBW Bank ETF (KBE), which will now be known as SPDR S&P Bank ETF; SPDR KBW Capital Markets ETF (KCE), which will now be known as SPDR S&P Capital Markets ETF; SPDR KBW Insurance ETF (KIE), which will now be known as SPDR S&P Insurance ETF; SPDR KBW Mortgage Finance ETF (KME), which will now be known as SPDR S&P Mortgage Finance ETF; and SPDR KBW Regional Banking ETF (KRE), which will now be known as SPDR S&P Regional Banking ETF.
State Street manages more than $245 billion in SPDR ETF assets worldwide as of end-September 2011, and is one of the largest ETF providers in the United States and globally.
Danielle Reed writes for Financial Planning.