SSgA Launches New SPDR O-Strip ETF

State Street Global Advisors (SSgA) has introduced the SPDR O Strip exchange traded fund (ETF), which it says is the first ETF to track the newly launched Standard & Poor's (S&P) 500 O Strip Index. The SPDR O Strip ETF

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State Street Global Advisors (SSgA) has introduced the SPDR O-Strip exchange traded fund (ETF), which it says is the first ETF to track the newly-launched Standard & Poor’s (S&P) 500 O-Strip Index.

The SPDR O-Strip ETF is designed to allow an investor the ability to purchase, in a single trade, all of the individual S&P 500 constituent securities that are primarily traded on the over-the-counter market.

All SPDR O-Strip constituents are members of the S&P 500 and must meet its specific criteria for index inclusion. The S&P 500 O-Strip Index currently includes 75 constituents, representing 15% of the total market capitalization of the S&P 500.

“The introduction of the SPDR O-Strip ETF underscores our commitment to providing investors with sophisticated, yet practical investment options as part of a diversified range of investment products that will enable them to achieve their investment goals,” says Gus Fleites, managing director of SSgA’s Advisor Strategies unit.

“We created the S&P 500 O-Strip Index to help investors track different parts of the S&P 500,” says Robert Shakotko, managing director for Standard & Poor’s. “The new SPDR O-Strip launched by SSgA will permit investors to buy a portfolio of companies that represents one of the building blocks of the S&P 500.”

State Street, in partnership with the American Stock Exchange, introduced the first ETF, the SPDR, in 1993. SSgA now has more than $64 billion in ETF assets under management worldwide, which represents approximately 28 percent of ETF assets globally.

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