HREX CLOSED 11/11/2016
State Street begun trading 2 new ETFS, the SPDR S&P International Dividend Currency Hedged ETF (NYSEArca: HDWX) and the SPDR MSCI International Real Estate Currency Hedged ETF (NYSEArca: HREX) on Tuesday, September 15, 2015.
1.
FUND INFORMATION:
| Symbol: HDWX | Exchange: NYSE Arca |
| Name: SPDR S&P International Dividend Currency Hedged ETF | Net Expense Ratio: 0.48% |
FUND OBJECTIVE:
The SPDR S&P International Dividend Currency Hedged ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P International Dividend Opportunities USD Hedged Index.
REFERENCE INDEX:
The S&P International Dividend Opportunities USD Hedged Index is a market capitalization weighted index designed to represent the performance of the 100 highest dividend-yielding common stocks and ADRs listed in primary exchanges of countries included in the S&P Global BMI ex U.S. (Broad Market Index). The Index is reconstituted semi-annually. To be included in the Index, stocks must meet, as of the reference date (the last trading date of June and December), the following investability criteria:
* a total market capitalization greater than $1.5 billion;
* a float-adjusted market capitalization greater than $600 million for developed market stocks and $300 million for emerging market stocks; and
* a 3-month average daily value traded greater than $5 million.
Additionally, stocks must meet the following stability criteria: positive 3-year earnings growth and profitability, as measured by positive earnings per share before extraordinary items over the latest 12 month period. In addition, stocks must be listed on the primary exchanges of countries allowing free-in-kind transfer of shares (i.e., where there is no cash involved in a trade). To ensure diverse exposure, the Index is subject to the following limits at rebalancing: no single country or sector has more than 25% weight in the Index and; emerging market exposure is limited to 15%; no stock has more than a 3% weight; and trust exposure (including real estate investment trusts) is limited to 10%. In addition, the minimum initial portfolio size that can be turned over in a single day (based on its 3 month average daily value traded) cannot be lower than $1 billion.
As of July 31, 2015, a significant portion of the Index comprises companies in the financial, utilities and telecommunications sectors and companies organized in Australia and the United Kingdom, although this may change from time to time. The market capitalization and liquidity thresholds are subject to change according to market conditions. The Fund’s investments will be denominated in foreign currencies, thereby potentially subjecting the Fund to fluctuations in exchange rates between such currencies and the U.S. dollar. The Index applies a methodology to effectively create a “hedge” against such fluctuations by employing a one-month forward rate against the total value of the non-U.S. denominated securities included in the Index. The hedge is reset on a monthly basis.
Top 10 Index Country Weightings (09/15/2015):
| Australia | 23.12% |
| United Kingdom | 17.61% |
| Canada | 9.11% |
| Finland | 5.54% |
| South Africa | 4.95% |
| Italy | 4.87% |
| Sweden | 4.22% |
| France | 4.21% |
| Germany | 3.78% |
| China | 3.03% |
Top 10 index companies (09/15/2015):
| Fortescue Metals Group Ltd | 3.79% |
| Berkeley Group Holdings plc | 3.12% |
| National Grid plc | 2.86% |
| Woodside Petroleum Ltd | 2.69% |
| Fortum Oyj | 2.67% |
| Crescent Point Energy Corp. | 2.54% |
| Vodafone Group PLC | 2.50% |
| Woolworths Ltd | 2.43% |
| Royal Dutch Shell Plc Class A | 2.35% |
| Snam S.p.A. | 2.28% |
Index Sector Breakdown (09/15/2015):
| Financials | 24.54% |
| Utilities | 22.17% |
| Telecommunication Services | 16.09% |
| Energy | 13.81% |
| Materials | 8.39% |
| Consumer Discretionary | 6.77% |
| Industrials | 3.36% |
| Consumer Staples | 2.43% |
| Information Technology | 1.28% |
| Health Care | 1.15% |
Useful Links:
HDWX Home Page
Category: Equities> International Equities> International Dividends
2.
FUND INFORMATION:
| Symbol: HREX | Exchange: NYSE Arca |
| Name: SPDR MSCI International Real Estate Currency Hedged ETF | Net Expense Ratio: 0.48% |
FUND OBJECTIVE:
The SPDR MSCI International Real Estate Currency Hedged ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the MSCI World ex USA IMI Core Real Estate Capped 100% Hedged To USD Index.
REFERENCE INDEX:
The MSCI World ex USA IMI Core Real Estate Capped 100% Hedged To USD Index is a free float-adjusted market capitalization-weighted index that is designed to reflect the performance of stocks in the MSCI World ex USA IMI Index that are engaged in the ownership, development and management of specific core real estate property types.
To be included in the Index, a company needs to derive at least 75% of its revenues from real estate activities related to a combination of the following specific core property types: industrial, office, retail, residential, health care, hotel and resort, data centers, and storage.
On a semi-annual basis (generally on the first business day of June and December), if the weight of any country included the Index exceeds 20% of the Index, such country’s weight in the Index will be capped at 20%, and the weight in excess of the 20% cap will be redistributed to all other countries that do not exceed the 20% cap in proportion to their free-float adjusted market capitalization.
As of July 31, 2015, a significant portion of the Index comprises companies organized in Japan and Hong Kong, although this may change from time to time. The Fund’s investments will be denominated in foreign currencies, thereby potentially subjecting the Fund to fluctuations in exchange rates between such currencies and the U.S. dollar. The Index applies a methodology to effectively create a “hedge” against such fluctuations by employing a one-month forward rate against the total value of the non-U.S. denominated securities included in the Index. The hedge is reset on a monthly basis. In order to replicate the “hedging” component of the Index, the Fund intends to enter into foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies.
Top 10 Index Country Weightings (09/16/2015):
| Japan | 19.40% |
| Hong Kong | 15.03% |
| United Kingdom | 14.92% |
| Australia | 12.41% |
| France | 8.61% |
| Germany | 7.40% |
| Singapore | 7.27% |
| Canada | 3.77% |
| Sweden | 2.52% |
| Switzerland | 2.30% |
Top 10 index companies (09/16/2015):
| Unibail-Rodamco SE | 4.79% |
| Sun Hung Kai Properties Limited | 4.66% |
| Mitsubishi Estate Company Limited | 3.07% |
| Vonovia SE | 3.01% |
| Land Securities Group PLC | 2.90% |
| Scentre Group | 2.81% |
| Mitsui Fudosan Co. Ltd. | 2.70% |
| Westfield Corporation | 2.68% |
| Link Real Estate Investment Trust | 2.44% |
| British Land Company PLC | 2.35% |
Index Sector Breakdown (09/16/2015):
| Retail REITs | 22.48% |
| Diversified Real Estate Activities | 22.23% |
| Diversified REITs | 18.27% |
| Real Estate Operating Companies | 17.73% |
| Office REITs | 9.35% |
| Industrial REITs | 4.08% |
| Real Estate Development | 2.35% |
| Residential REITs | 1.85% |
| Hotel & Resort REITs | 0.75% |
| Specialized REITs | 0.55% |
| Health Care REITs | 0.36% |
Useful Links:
HREX Home Page
Category: Real Estate> International Real Estate