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SPDR Launches European Version Of Flagship ETF
By Staff | 21 March, 2012

SPDR has launched a European variant of its flagship US-listed S&P 500 ETF, but whether or not it can replicate the phenomenal success enjoyed by the product Stateside remains to be seen.

Its American fund was the first ETF to trade in the US back in 1993, and it remains the most popular S&P 500 ETF, with its assets under management of around US$95 billion far outstripping those of its rivals.

James Ross, senior managing director and global head of SPDR ETFs at SSgA, said: “The SPDR S&P 500 is well-recognised by many investors. The case for investing is straightforward–instant and easy access to one of the world’s premier indexes tracking 500 large cap US stocks diversified across a range of sectors.”

SPDR, the ETF arm of State Street Global Advisors, has been making a concerted push into the European market over the past year, with its most recent new launches less than a month ago.

However, the new product already has a substantial amount of competition—rather than the first mover advantage it enjoyed in the US, its European fund comes as more of a last mover. Europe’s top three ETF providers—iShares, Lyxor and db X-trackers—all have S&P 500 ETFs, as do a number of other providers, such as Amundi, ComStage, Easy ETF and HSBC.

The total expense ratio on SPDR’s European ETF may go some way towards setting it apart from the crowd—at 0.15 percent it is lower the equivalent offerings from iShares, Lyxor and db X-trackers.

In addition, the new ETF will be managed by the same team that has overseen the US product for the past 19 years.

The fund uses physical replication and is listed on Deutsche Boerse and the London Stock Exchange.

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