State Street Global Advisors Introduces Actively Managed SPDR ETF to Help Investors Manage Risk-on and Risk-off Market Cycles

State Street Global Advisors (SSGA), has announced the SPDR SSGA Risk Aware ETF (Symbol: RORO) began trading on the NYSE Arca on September 10, 2014.  The new fund is actively managed by SSGA’s Active Quantitative Equity Group and is based on…  


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the firm’s proprietary quantitative market risk measurement model. The model is intended to help identify, quantify and benefit from risk factors moving the markets at any given time.

“The SPDR SSGA Risk Aware ETF is targeted at providing investors an innovative solution for capitalizing on risk-on and risk-off fluctuations in the US equity market,” said Scott Ebner, senior managing director and global head of product development and research at State Street Global Advisors. “Active quant strategies have been a core competency of SSGA’s institutional asset management and mutual fund businesses for decades, and RORO is the first active equity ETF managed by this SSGA investment team.”

The SPDR SSgA Risk Aware ETF seeks to provide competitive returns compared to the broad U.S. equity market and capital appreciation.  Among the factors in the model are beta, size, credit risk, credit spreads, gold price, US dollar exchange rates and implied volatility.  During periods of anticipated high risk, the portfolio’s composition will be defensive and may increase exposure to large cap and / or value companies.  During periods of anticipated low risk, the portfolio’s composition will be risk-seeking and may increase exposure to small cap and / or growth companies.  In periods of moderate risk, the portfolio’s composition will more closely reflect the broader US equity market and may have greater exposure to midcap companies.  The SPDR SSGA Risk Aware ETF’s annual expense ratio is 0.50 percent.

Source: ETFWorld.com


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