ESIX Profile
The SPDR S&P SmallCap 600 ESG ETF is engineered to offer investors exposure to small-cap U.S. companies that meet specific environmental, social, and governance (ESG) criteria. Under typical market conditions, the fund commits at least 80% of its total assets to securities that are constituents of its underlying index. This approach ensures that the fund's investments align closely with its ESG objectives while providing broad exposure to the small-cap segment of the U.S. equity market.
The underlying index for the ETF is crafted to track the performance of securities that satisfy established ESG standards, with an emphasis on maintaining the overall industry group weights of the S&P SmallCap 600 Index. This index is designed to reflect the performance of small-cap companies that meet rigorous ESG criteria, including factors such as environmental sustainability, social responsibility, and robust corporate governance practices. By incorporating these ESG elements, the index aims to provide a more responsible investment option within the small-cap space.
The ETF’s investment strategy involves a comprehensive screening process to select companies that not only fit within the small-cap universe but also demonstrate strong ESG performance. This methodology helps to ensure that the fund's portfolio is composed of firms that adhere to high standards of environmental stewardship, social impact, and governance. The fund’s non-diversified nature means it focuses on a specific segment of the market, which can enhance its alignment with the chosen ESG criteria but also introduces concentrated exposure to the small-cap sector.
Managed by State Street Global Advisors, the SPDR S&P SmallCap 600 ESG ETF reflects the firm’s commitment to integrating ESG factors into investment strategies. This fund aligns with the growing investor demand for sustainable and responsible investment options, providing a pathway for investors to support companies that contribute positively to society and the environment while seeking potential financial returns. Through this ETF, investors can gain access to a carefully curated selection of small-cap companies that are aligned with their ESG values.
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