XTH, XWEB: new Technology Hardware and Internet ETFs by State Street

State Street Global Advisors (SSGA), begun trading the SPDR S&P Technology Hardware ETF (NYSE Arca: XTH) and the SPDR S&P Internet ETF (NYSE Arca: XWEB) on Tuesday, June 28, 2016. Here is a synopsis of the new ETFs:

1.
FUND INFORMATION:

Symbol: XTH Exchange: NYSE Arca
Name: SPDR S&P Technology Hardware ETF Net Expense Ratio: 0.35%

 

FUND OBJECTIVE:
The SPDR S&P Technology Hardware ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Technology Hardware Select Industry Index.

 

REFERENCE INDEX:
The S&P Technology Hardware Select Industry Index represents the technology hardware segment of the S&P Total Market Index (S&P TMI). The S&P TMI is designed to track the broad U.S. equity market. The technology hardware segment of the S&P TMI comprises the technology hardware, storage & peripherals sub-industry, electronic equipment & instruments sub-industry, and electronic components sub-industry.

The Index is one of 21 of the S&P Select Industry Indices (the Select Industry Indices), each designed to measure the performance of a narrow sub-industry or group of subindustries determined based on the Global Industry Classification Standards (GICS). Membership in the Select Industry Indices is based on the GICS classification, as well as liquidity and market cap requirements. Companies in the Select Industry Indices are classified according to GICS which determines classifications primarily based on revenues; however, earnings and market perception are also considered. The Index consists of the S&P TMI constituents belonging to the particular GICS sub-industry or group of sub-industries that satisfy the following criteria:
(i) have a float-adjusted market capitalization above $500 million with a float-adjusted liquidity ratio (defined by dollar value traded over the previous 12 months divided by the float-adjusted market capitalization as of the index rebalancing reference date) above 90% or have a float-adjusted market capitalization above $400 million with a floatadjusted liquidity ratio (as defined above) above 150%; and
(ii) are U.S. based companies.

The length of time to evaluate liquidity is reduced to the available trading period for initial public offerings or spin-offs that do not have 12 months of trading history. The market capitalization threshold may be relaxed to ensure that there are at least 22 stocks in the Index as of the rebalancing effective date. Existing Index constituents are removed at the quarterly rebalancing effective date if either their float-adjusted market capitalization falls below $300 million or their float adjusted liquidity ratio falls below 50%. The market capitalization threshold and the liquidity threshold are each reviewed from time to time based on market conditions. Rebalancing occurs on the third Friday of the quarter ending month. The S&P TMI tracks all eligible U.S. common equities listed on the NYSE, NYSE Arca, NYSE MKT, NASDAQ Global Select Market, NASDAQ Select Market, NASDAQ Capital Market, Bats BZX, Bats BYX, Bats EDGA, and Bats EDGX exchanges. The Index is a modified equal weighted market cap index. As of June 20, 2016, the Index comprised 43 stocks.
The Index is sponsored by S&P Dow Jones Indices LLC (Index Provider), which is not affiliated with the Fund or the Adviser. The Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.

Fund Top Consituents (09/27/16):

FEI Company 3.08%
Lexmark International Inc. Class A 3.08%
EMC Corporation 3.02%
Dolby Laboratories Inc. Class A 2.99%
3D Systems Corporation 2.90%
FLIR Systems Inc. 2.90%
NetApp Inc. 2.90%
Amphenol Corporation Class A 2.89%
Apple Inc. 2.88%
Keysight Technologies Inc 2.88%

Fund Sub-Industry Allocation (09/27/16):

Technology Hardware Storage & Peripherals 42.65%
Electronic Equipment & Instruments 31.16%
Electronic Components 26.19%

 

 

Useful Links:
XTH Home Page

 

 

Category: Equities> Regions> USA> US Sectors/Industries> US Technology

 

 

2.
FUND INFORMATION:

Symbol: XWEB Exchange: NYSE Arca
Name: SPDR S&P Internet ETF Net Expense Ratio: 0.35%

FUND OBJECTIVE:
The SPDR S&P Internet ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Internet Select Industry Index.

 

REFERENCE INDEX:
The S&P Internet Select Industry Index represents the internet segment of the S&P Total Market Index (S&P TMI). The S&P TMI is designed to track the broad U.S. equity market. The internet segment of the S&P TMI comprises the internet retail sub-industry and internet software & services sub-industry.

The Index is one of 21 of the S&P Select Industry Indices (Select Industry Indices), each designed to measure the performance of a narrow sub-industry or group of subindustries determined based on the Global Industry Classification Standards (GICS). Membership in the Select Industry Indices is based on the GICS classification, as well as liquidity and market cap requirements. Companies in the Select Industry Indices are classified according to GICS which determines classifications primarily based on revenues; however, earnings and market perception are also considered. The Index consists of the S&P TMI constituents belonging to the particular GICS sub-industry or group of sub-industries that satisfy the following criteria:
(i) have a float-adjusted market capitalization above $500 million with a float-adjusted liquidity ratio (defined by dollar value traded over the previous 12 months divided by the float-adjusted market capitalization as of the index rebalancing reference date) above 90% or have a float-adjusted market capitalization above $400 million with a floatadjusted liquidity ratio (as defined above) above 150%; and
(ii) are U.S. based companies.

The length of time to evaluate liquidity is reduced to the available trading period for initial public offerings or spin-offs that do not have 12 months of trading history. The market capitalization threshold may be relaxed to ensure that there are at least 22 stocks in the Index as of the rebalancing effective date. Existing Index constituents are removed at the quarterly rebalancing effective date if either their float-adjusted market capitalization falls below $300 million or their floatadjusted liquidity ratio falls below 50%. The market capitalization threshold and the liquidity threshold are each reviewed from time to time based on market conditions. Rebalancing occurs on the third Friday of the quarter ending month. The S&P TMI tracks all eligible U.S. common equities listed on the NYSE, NYSE Arca, NYSE MKT, NASDAQ Global Select Market, NASDAQ Select Market, NASDAQ Capital Market, Bats BZX, Bats BYX, Bats EDGA, and Bats EDGX exchanges. The Index is a modified equal weighted market cap index. As of June 20, 2016, the Index comprised 60 stocks.
The Index is sponsored by S&P Dow Jones Indices LLC (Index Provider), which is not affiliated with the Fund or the Adviser. The Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.

 

Fund Top Consituents (06/27/16):

LinkedIn Corporation Class A 3.17%
Twitter Inc. 2.48%
GrubHub Inc. 2.24%
Wayfair Inc. Class A 2.24%
Zillow Group Inc. Class C 2.23%
Demandware Inc. 2.19%
Yelp Inc. Class A 2.18%
Pandora Media Inc. 2.17%
Akamai Technologies Inc. 2.13%
CoStar Group Inc. 2.12%

 

Fund Sub-Industry Allocation (06/27/16):

Internet Software & Services 78.74%
Internet Retail 21.26%

 

 

Useful Links:
XWEB Home Page

 

 

Category: Equities> Regions> USA> US Sectors/Industries> US Technology

 

 

ETFtrack comment:
Here is a comment from Nick Good, co-head of the Global SPDR business at State Street Global Advisors:
“The US technology-related landscape includes a wide range of companies; from younger firms focused on cutting edge products to the largest, most well-known brands. “Investors have asked us for solutions to help refine their investment options by gaining access to technology-related sub-industries that are found in XTH and XWEB. In addition, with a modified equal weighted approach, investors may reduce the risk of being limited to a portfolio driven by one or two large names, relative to a market cap weighted approach.”

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