SSgA real estate ETF launch expands SPDR range in Europe
State Street Global Advisors (SSgA) has expanded its European SPDR ETFs range into a new asset class, with the launch of the SPDR Dow Jones Global Real Estate ETF on Deutsche Börse’s Xetra exchange.
The SPDR fund is physically backed, and tracks the Dow Jones Global Select Real Estate Securities Index by owning a diversified portfolio of listed real estate investment trusts and operating companies to replicate the global real estate market.
In a statement, SSgA said: “This new ETF offers an easy, cost-efficient and liquid way to access property exposure in a Ucits-compliant form. Global real estate investment provides diversification due to its low correlation to equities and bonds.”
“The inclusion of emerging markets (just under 5% of the index) enables investors to access property companies in rapidly growing countries that are likely to evolve to take greater prominence in the global property market.”
Scott Ebner, global head of product development at SPDR ETFs, said: “It can be challenging for clients to manage real estate allocations efficiently. The global and diversified nature of our new SPDR ETF could serve as a core real estate holding in a well-balanced portfolio.”
SSgA has 43 SPDR ETFs listed on European exchanges, including the London Stock Exchange and Deutsche Börse. The SPDR Dow Jones Global Real Estate ETF is also registered for sale in Ireland, Italy, France, the Netherlands, Sweden and the UK.
State Street Global Advisors manages more than $335bn in about 170 ETFs worldwide. This AUM includes the assets of the SPDR Gold Trust, about $75.3bn as of September 30, 2012.