State Street cuts fees on six ETFs

State Street Global Advisors announced management cost reductions on six of its Australian-based ETFs.

Effective July 1, management costs will be cut for several ETFs including in international equities, Australian equities, listed property and emerging markets.

The SPDR S&P World ex Australia Carbon Control Fund (WXOH) will see fees reduced from 0.18% to 0.07%, and the SPDR S&P World ex Australia Carbon Control (Hedged) Fund (WXHG) will see fees reduces from 0.21% to 0.10%.

The SPDR S&P/ASX 50 Fund (SFY) will see fees reduced from 0.286% to 0.20%.

The SPDR Dow Jones Global Real Estate ESG Fund (DJRE) will see fees drop from 0.50% to 0.20%, while the SPDR S&P/ASX 200 Listed Property Fund (SLF) will have feed reduced from 0.40% to 0.16%.

Lastly, the SPDR S&P Emerging Markets Carbon Control Fund (WEMG) will see a fee reduction from 0.65% to 0.35%.

Three of the six funds are expected to be the lowest cost ETF in their respective peer groups - WXOZ, WXHG and SLF - with DJRE being the lowest cost unhedged global property ETF.

In addition, SFY and WEMG will be one of the most cost-effective ETFs in their asset class, State Street said.

State Street has 17 ETFs available on the ASX, and this round of fee reductions follows a similar move last year when the group made cost reductions on six other ETFs, including Australia's first ETF, the SPDR S&P/ASX 200 Fund (STW) which was reduced from 0.13% p.a. to 0.05% p.a.

"Today's announcement makes investing in ETFs more affordable for a broad range of investors, from those just starting out to the more experienced seeking more from their core portfolio," State Street head of intermediary, Asia Pacific, Meaghan Victor said.

"As the core is typically the largest part of a portfolio, it is important to use cost-effective solutions over the long term. When constructing a portfolio, investors shouldn't consider the fee of one ETF in isolation. With a number of our core exposures to be priced at 10 basis points or less, investors will have greater choice when constructing a cost-effective diversified portfolio."

Victor said the fee changes demonstrate State Street's commitment to the democratisation of investing by delivering cost-effective institutional quality investment solutions.

"We are excited to be able to offer investors some of the most cost-effective ETF offerings in their respective peer groups, with fee reductions announced today up to 0.30% p.a.," she said.