State Street To Begin Trading The SPDR S&P Emerging Markets Dividend ETF (EDIV) Thursday February 24th

State Street will begin trading its new “SPDR S&P Emerging Markets Dividend ETF” (NYSE:EDIV) Thursday, February 24, 2011. The SPDR S&P Emerging Markets Dividend ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks dividend paying securities of publicly-traded companies in emerging markets.

THE FUND’S INVESTMENT STRATEGY

In seeking to track the performance of the S&P Emerging Markets Dividend Opportunities Index (the “Index”), the Fund employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in the Index.  Instead the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. SSgA Funds Management, Inc. (“SSgA FM” or the “Adviser”) generally expects the Fund to hold less than the total number of securities in the Index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund’s investment objective.

Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index or in securities the Adviser determines have economic characteristics substantially identical to the economic characteristics of the securities that comprise the Index. The Fund will provide shareholders with at least 60 days notice prior to any material change in this 80% investment policy. In addition, the Fund may invest in equity securities that are not included in the Index, futures, options, swap contracts and other derivatives, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Adviser).

The Index is comprised of 100 of the highest yielding emerging markets stocks, based on market capitalization, in the S&P Dividend Opportunities family of indices (excluding the S&P/CITIC China A-Share Dividend Opportunities Index) that meet certain investability requirements. The S&P Dividend Opportunities family is comprised of the following five indices: the S&P Global Dividend
Opportunities Index; the S&P International Dividend Opportunities Index; the S&P Pan Asia Dividend Opportunities Index; the S&P Europe Dividend Opportunities Index and the S&P/CITIC China A-Share Dividend Opportunities Index.  The Index includes publicly traded companies with market capitalizations of at least U.S.$1 billion, float-adjusted market cap of US$ 300 million and three-month average daily value traded above the liquidity threshold of U.S.$1 million as of the rebalancing reference date.  The stocks must be listed on the primary exchanges of those countries included in the S&P/IFCI.  In the event that a stock from an eligible country is listed on the local and the developed market exchanges, the preference will be given to a more liquid listing.  Stocks passing these criteria form the investible universe and are then subject to screening for two stability factors, earnings growth and profitability. Stocks must have a positive, cumulative three-year earnings growth and stocks must be profitable, as measured by positive earning per share before extraordinary items, over the latest 12-month period as of the rebalancing reference date. The Index is rebalanced after the US market close on the third Friday of January. In addition, S&P is introducing a semi-annual review, effective on the third Friday of July.  The results of the review may result in an update to the weights of the constituents to comply with the index weighting requirements.  No single country or sector can have more than 25% weight in the Index and no single stock can have a weight of more than 3% in the Index.  Countries covered in the Index have historically included, among others,: Brazil, Chile, China, the Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. As of [July 30], 2010, the Index was comprised of [100] securities.

For the complete filing click: HERE

Leave a Reply

Your email address will not be published. Required fields are marked *