State Street Global Advisors (SSGA) has lowered the fees on its €2.5bn suite of sector ETFs, in a move to attract investors during the ongoing shift to value.
Effective 9 March, the 10 European sector-focused ETFs cut their total expense ratios (TERs) from 0.30% to 0.23%.
They 10 ETFs are:
Offering exposure to the subindices of the MSCI Europe index, SSGA’s ETFs are based on their respective Global Industry Classification Standard (GICS) sectors.
Listed across popular European exchanges, the strategies are internally weighted based on market cap, with maximum allocations of 35% and 20% for their first and second-largest holdings, respectively.
The fee cut will see SSGA’s products move into a position of advantage versus many of their counterparts, with the Invesco, DWS, and Lyxor products – based on the Stoxx Europe 600 index – charging 0.30%.
This is particularly significant given that in a recent Brown Brothers Harriman survey, European investors said that expense ratios were their third biggest consideration when choosing an ETF.
The only suite of sector-focused products now offering cheaper fees are those offered by BlackRock with fees of 0.18%. The trade-off with this suite is it offers exposure to just six sectors, covering the: consumer discretionary, consumer staples, energy, financials, healthcare, and information technology sectors.