BOSTON — September 17, 2009 — State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced that the SPDR® Wells Fargo® Preferred Stock ETF (PSK) began trading on the NYSE Arca on September 17, 2009. Its annual expense ratio is 0.45 percent.
The SPDR Wells Fargo Preferred Stock ETF seeks to track the performance of the Wells Fargo® Hybrid and Preferred Securities Aggregate Index. The index includes non-convertible preferred securities listed on the NYSE or NYSE Arca that have a par amount of $25; are rated investment grade by Moody's Investors Service, Inc. or Standard & Poor's Ratings Services; and have a minimum monthly trading volume during each of the last six months of at least 250,000 trading units. As of July 31, 2009, the index provides exposure to more than 160 securities.
Preferred stock is an asset class that shares some similarities with both common stock and bonds. Preferred stock represents partial ownership in a company, however, shareholders usually do not have voting rights, and similar to bonds, the primary source of return is usually generated by a fixed payment – a dividend that must be paid out before dividends to common stockholders.
"The SPDR Wells Fargo Preferred Stock ETF provides financial advisors and investors with improved access to the benefits of this unique asset class, which include high yields and a low correlation to both bonds and common stock," said Anthony Rochte, senior managing director at State Street Global Advisors. "Developed in response to investor demand, the SPDR Wells Fargo Preferred Stock ETF is based on an index that offers a level of diversification that is unmatched by other benchmarks in this asset class."
State Street Global Advisors is one of the largest ETF providers in the United States and globally. U.S. assets under management for SPDR ETFs totaled more than $160 billion as of August 31, 2009.
About State Street Global Advisors
State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.6 trillion in assets under management at June 30, 2009, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.
