3 New SPDR Equal-Weighted Industry ETFs

January 29, 2011 by  
Filed under Commentary, ETF IPOs (New ETFs), ETFs

State Street Global Advisors (SSgA) last Thursday (1/27/11) announced the addition of three new equal-weighted industry ETFs to their lineup.  The new offerings are SPDR S&P Transportation ETF (XTN), SPDR S&P Telecom ETF (XTL), and SPDR S&P Health Care Equipment ETF (XHE).

This brings the total number of SPDR equal-weighted industry ETFs to eleven.  State Street also offers seven cap-weighted US industry ETFs, in addition to cap-weighted Select Sector SPDRs, International Sector suites, and other global sector and industry ETFs.

The three new ETFs have expense ratios of 0.35% and target the performance of sub-industries and sub-sectors within the US total market composite index.  Each segment is defined by the Global Industry Classification Standards (“GICS”), and constituents are further refined by liquidity and market cap filters.

SPDR S&P Transportation ETF (XTN) has 40 holdings (.csv file) based on a multi-tier equal-weighted methodology.  Sub-industry allocations include Trucking 34.7%, Airlines 27.9%, Air Freight & Logistics 19.2%, Railroads 14.4%, Marine 3.2%, and Airport Services 0.6%.  XTN overview and fact sheet (pdf).

SPDR S&P Telecom ETF (XTL) includes 60 holdings (.csv file) based on a multi-tier equal-weighted methodology.  Sub-industry allocations include Communications Equipment 59.1%, Wireless Services 19.0%, Integrated Services 13.4%, and Alternative Carriers 8.5%.  XTL overview and fact sheet (pdf).

SPDR S&P Health Care Equipment ETF (XHE) consists of 57 holdings (.csv file) based on a multi-tier equal-weighted methodology.  Sub-industry allocations consist of Health Care Equipment 82.6% and Health Care Supplies 17.4%.  XHE overview and fact sheet (pdf).

The prospectus (pdf) covers 18 equal-weighted SPDR Select Industry ETFs: the three new ones, the eight previously released, plus seven more that are not available yet.  The ETFs still in development target Aerospace & Defense, Building & Construction, Computer Hardware, Computer Software, Health Care Services, Leisure Time, and Outsourcing & IT Consulting.

The 11 equal-weighted SPDR Select Industry ETFs:

  1. SPDR S&P Biotech ETF (XBI)
  2. SPDR S&P Health Care Equipment ETF (XHE)
  3. SPDR S&P Homebuilders ETF (XHB)
  4. SPDR S&P Metals & Mining ETF (XME)
  5. SPDR S&P Oil & Gas Equipment & Services ETF (XES)
  6. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
  7. SPDR S&P Pharmaceuticals ETF (XPH)
  8. SPDR S&P Retail ETF (XRT)
  9. SPDR S&P Semiconductor ETF (XSD)
  10. SPDR S&P Telecom ETF (XTL)
  11. SPDR S&P Transportation ETF (XTN)

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

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