State Street Global Advisors (SSgA) has reduced fees on its SPDR ETF–SPDR S&P/ASX 200 Fund from 0.286 per cent per annum down to 0.19 per cent per annum.
The fund (which has the ticker code STW) was the first exchange traded fund (ETF) listed in Australia and is the largest ETF, having $3.1 billion in assets under management.
Commenting on the changes, Amanda Skelly, head of SPDR ETFs for Australia said, "STW exemplifies the key reasons why investors around the world use ETFs, that is, diversification, low cost, simplicity and transparency. It also provides Australian investors with a more tax effective outcome than many actively managed strategies".
"The changes reflect the significant economies of scale that ETF investors can now tap into when investing with SPDR ETFs. We want to offer our clients the very best value and service possible and are delighted as part of our continual product review process to be able to reduce the fees on this popular ETF."
This change follows another milestone in the Australian ETF Industry. In October 2015 the industry surpassed $20 billion in assets under management, demonstrating that ETFs have moved into the mainstream investment arena.
In addition to launching Australia's first ETF, SSgA launched the first ETF in the US: the SPDR S&P 500 ETF (SPY), which is also available on the ASX.
This fee change follows a range of fee reductions across SSgA's global ETF product suite, including the ASX-listed SPDR S&P World ex Australia (hedged) Fund (WXHG) and the SPDR S&P World ex Australia Fund (WXOZ).
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Jul 2018AMP unveils new in-house training programBy Reporter
- 19 Jul 2018Self-licensed adviser cops 4-year ASIC banBy Reporter
- 19 Jul 2018Hub24 to launch new core offeringBy Reporter
- 19 Jul 2018SMSF sector warns about advice ‘exodus’By Miranda Brownlee
- 19 Jul 2018Product issuers to be held accountable under new regulationBy Reporter
- 19 Jul 2018Advisers should ditch ‘tarnished’ bank brandsBy Tim Stewart
- view all