Industry Updates

State Street cuts fee on euro government bond ETF by a third

The TER reduction coincides with SYBB commencing securities lending

Jamie Gordon

State Street office building

State Street Global Advisors (SSGA) has continued its fee offensive by cutting the expense ratio on its euro government bond ETF by a third. 

Effective 1 November, the $1.2bn SPDR Bloomberg Euro Government Bond UCITS ETF (SYBB) will see its total expense ratio (TER) slashed from 0.15% to 0.10%. 

The move will position SYBB as Europe’s sixth lowest-fee ETF capturing euro sovereign debt. 

Launching in 2011, the ETF tracks the Bloomberg Euro Treasury Bond index to offer market cap-weighted exposure to 446 eurozone government bonds with an average maturity of 8.64 years and yield to maturity of 3.52%. 

Changes to SYBB’s TER coincide with fee cuts to three SSGA S&P 500 ETFs

The SPDR S&P 500 UCITS ETF (SPY5) will see its TER drop by two-thirds – from 0.09% to 0.03% – to become the lowest-fee UCITS ETF. 

Elsewhere, the SPDR S&P 500 ESG Leaders UCITS ETF (SPPY) will also see its TER drop to 0.03% – down from 0.10% - while the SPDR S&P 500 EUR Hdg UCITS ETF (SPPE) sees its fee cut from 0.12% to 0.05%.  

All four of the ETFs set to undergo changes to their fee structure are included in the list of 67 Europe-listed SSGA ETFs set to begin lending out their underlying securities from 27 October. 

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