7 ETFs Joining The SPDR Lineup of Cheap Core Funds

As has been widely documented, a slew of exchange traded funds carry extremely low fees and, in many cases, fees are declining in the ETF universe.

Some of the largest issues of ETFs are not shy about competing fees, cutting expenses on so called core funds to 0.05% and lower. Simple math confirms that less an investor pays in fees over time, the better his or her outcomes will be.

State Street Global Advisors (SSgA), the company behind the popular SPDR brand of ETFs, launched its SPDR Portfolio, a suite of inexpensive ETFs, in 2017. Today, that group is a $34.4 billion juggernaut and its growing, both in assets and number of funds.

On Friday, Boston-based SSgA announced the addition of seven ETFs to its low-cost SPDR Portfolio, news that included expense ratio reductions on three funds. Let's look at those seven additions here.

SPDR Portfolio MSCI Global Stock Market ETF (SPGM)

Formerly known as the SPDR MSCI ACWI IMI ETF, the SPDR Portfolio MSCI Global Stock Market ETF SPGM has a new name, new ticker and most importantly, a new annual fee. SPGM now charges 0.09% per year, well below its previous expense ratio of 0.25%.

SPDR Portfolio Europe ETF (SPEU)

The ETF formerly known as the SPDR STOXX Europe 50 ETF is now the SPDR Portfolio Europe ETF FEU. European stocks are again lagging their U.S. counterparts, but investors willing to bet on a rebound in Europe, SPEU makes a lot of sense. Well, at the very least, it's a lot cheaper to bet on a Europe resurgence with this fund now that it charges 0.09% per year, down from its previous expense ratio of 0.29%.

SPDR Portfolio TIPS ETF (SPIP)

There isn't much inflation to speak of these days, but if that scenario rears its head again, investors can combat it with the SPDR Portfolio TIPS ETF SPIP, which used to be the SPDR Bloomberg Barclays TIPS ETF. SPIP charges 0.12%, compared to 0.15% under its previous iteration.

SPDR Portfolio High Yield Bond ETF (SPHY)

The SPDR Portfolio High Yield Bond ETF SPHY used to be the SPDR ICE BofAML Broad High Yield Bond ETF. The new name and ticker are the news here as the fund underwent a fee reduction and change in investment objective last year. SPHY's annual fee is a still economical 0.15%.

SPDR Portfolio Corporate Bond ETF (SPBO)

Another name and ticker change. The SPDR Portfolio Corporate Bond ETF SPBO previously existed as the SPDR Bloomberg Barclays Corporate Bond ETF. At 0.06% per year, the fund is one of the least expensive in the investment-grade corporate bond ETF category.

SPDR Portfolio Intermediate Term Treasury ETF (SPTI)

The SPDR Portfolio Intermediate Term Treasury ETF SPTI has nearly $932 million in assets under management, tracks the Bloomberg Barclays 3-10 Year U.S.Treasury Index and only holds bonds with maturities ranging from three to 10 years. Often overlooked in this category, its addition to the SPDR Portfolio could boost its notoriety.

SPDR Portfolio Mortgage Backed Bond ETF (SPMB)

A cost-effective avenue to mortgage-backed securities, the SPDR Portfolio Mortgage Backed Bond ETF SPMB charges just 0.06% and used to be the SPDR Bloomberg Barclays Mortgage Backed Bond ETF.

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