State Street Global Advisors (SSgA), the asset manager behind the SPDR brand of exchange-traded funds, has unveiled the first ETF in the US to track the Euro Stoxx Small Index.
SSgA has introduced the first ETF in the US to track the Euro Stoxx Small Index.
Listed on the NYSE Arca, the SPDR Euro Stoxx Small Cap ETF (SMEZ) provides investors with access to small companies across the euro zone.
James Ross, executive vice president and global head of SPDR ETFs, said: “As Europe’s economy recovers from a double-dip recession that began in 2008, investors are growing more optimistic about the growth potential of European equities. With the launch of the SPDR Euro Stoxx Small Cap ETF, investors will have an opportunity to diversify their European equity holdings while gaining exposure to small cap stocks, an asset class that tends to be highly correlated to the performance of local markets.”
The Euro Stoxx Small Index consists of a representation of small capitalization companies located within European Union countries that have adopted the euro as their currency. Countries covered in the index have historically included Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands and Spain. As of May 30, 2014 there were 96 constituents.
The new ETF strengthens SSgA’s coverage of European equities. Other ETFs offered by the provider include the SPDR Euro Stoxx 50 ETF (FEZ) and the SPDR Stoxx Europe 50 ETF (FEU). Year-to-date, these two funds have attracted more than $646 million of new inflows, as of May 30, 2014.
Hartmut Graf, chief executive officer of Stoxx, commented: “As European financial markets seem to be on the mend, US investors have picked up their investment allocation into European equities tremendously. For example, assets tied to the SPDR Euro Stoxx 50 ETF have doubled since the beginning of 2013. By licensing the Euro Stoxx Small to State Street Global Investors as underlying for an ETF, market participants in the US will now also be able to participate from the performance of euro zone small caps, which typically are associated with attractive valuations and higher growth potentials.”
The ETF has an expense ratio of 0.45 percent.