State Street Global Advisors has launched the SPDR Russell 2000 Low Volatility ETF (SMLV) and the SPDR Russell 1000 Low Volatility ETF (LGLV) to bet on small and large cap equities.
The SPDR Russell 2000 Low Volatility ETF tracks the Russell 2000 Low Volatility Index and carries an expense ratio 25 basis points. The SPDR Russell 1000 Low Volatility ETF tracks the Russell 1000 Low Volatility Index and has an expense ratio of 20 bps.
In a statement, James Ross, senior managing director and global head of SPDR Exchange Traded Funds at SSgA, said the new ETFs were developed in response to increasing demand from the firm’s investors looking to improve the risk adjusted returns of their portfolio, increase their equity allocation while maintaining downside protection, or tactically take a more defensive approach to the US large cap or small cap markets.
State Street manages more than $340 billion in SPDR ETF assets worldwide as of December 31, 2012.