SPSM - State Street plans to merge two small-cap ETFs
2023-03-06 11:24:44 ET
State Street Global Advisors ( NYSE: STT ) recently announced that it plans to merge two of its small cap exchange traded funds to create a single fund with about $7B in assets under management.
According to the ETF issuer, the SPDR S&P 600 Small Cap ETF ( NYSEARCA: SLY ) will be absorbed by the larger SPDR Portfolio S&P 600 Small Cap ETF ( NYSEARCA: SPSM ). The combination is slated to take place on or around June 9.
At the moment, SLY manages $1.8B in assets and SPSM holds $5.2B.
SPSM tracks the same index as SLY, the S&P SmallCap 600 Index. However, a key difference comes in the realm of expense ratio. SPSM is part of the low-cost SPDR Portfolio ETF suite of funds with a 0.05% expense ratio. Currently, SLY holds a 0.15% expense ratio.
SPSM and SLY have the same top 10 holdings and weightings, led by shares of Applied Industrial Technologies ( AIT ), SPS Commerce ( SPSC ) and ATI Inc ( ATI ). In both funds, AIT holds a 0.59% weighting, SPSC has a 0.58% weighting, and ATI holds a 0.56% portfolio position in both funds.
"Shareholders do not need to take any action," State Street Global Advisors said of the combination. "Each shareholder of SLY will receive shares of SPSM and cash in lieu of fractional SPSM shares."
six of its equity-focused ETFs.For further details see:
State Street plans to merge two small-cap ETFs