Industry Updates

State Street slashes fee on emerging markets ETF

Fee reduction to 0.18% brings it in line with competitors

Theo Andrew


State Street Global Advisors (SSGA) has more than halved the fee on its emerging markets ETF, slashing its total expense ratio (TER) by 24 basis points.

Effective 5 December, the SPDR MSCI Emerging Market UCITS ETF (SPYM) will have a TER of 0.18%, down from 0.42%.

SPYM, which houses roughly $312m assets under management (AUM), has recorded outflows of $145m so far this year, as at 28 November, according to ETFLogic.

Following the change, the ETF will be priced in line with its competitors’ emerging market ETFs, the cheapest of which is the Amundi Prime Emerging Markets UCITS ETF (PRAM) with a TER of 0.10%.

SPYM has also been one of the worst performing emerging market ETFs this year, returning -20.9% as at 28 November, compared to -18.2% for PRAM.

The ETF currently tracks the MSCI Emerging Markets index and currently has a 29.3% weighting towards China, followed by India (14.9%), Taiwan (14.8%) and South Korea (12.1%).

The largest holding in the index is Taiwan Semiconductor Manufacturing at 6.4%, with Tencent (3.6%) and Samsung Electronics (3.6%) rounding off the top three.

In June, SSGA expanded its Paris-Aligned Benchmark climate range with the launch of an emerging markets ETF, the SPDR MSCI Emerging Markets Climate Paris Aligned UCITS ETF (SPF7).

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