QEFA Profile
The SPDR MSCI EAFE StrategicFactors ETF is designed to provide investors with diversified exposure to developed markets outside North America, focusing on Europe, Australasia, and the Far East. Under normal market conditions, the fund allocates at least 80% of its total assets to the securities included in its underlying index, as well as to depositary receipts that represent these securities. This strategic allocation ensures that the fund closely tracks the performance of the index while maintaining a high level of investment in its key components.
The underlying index encompasses a broad range of large- and mid-cap stocks from 21 developed countries across Europe, Australasia, and the Far East. This index is specifically designed to reflect the performance of equity securities that exhibit characteristics associated with value, low volatility, and quality factor strategies. By focusing on these factors, the index aims to capture returns from companies that are considered undervalued, exhibit lower price fluctuations, and demonstrate high financial quality, providing a balanced approach to international equity investing.
The fund’s strategic focus on value, low volatility, and quality factors enables it to target stocks that are likely to perform well in various market conditions. Value stocks are those that appear undervalued relative to their intrinsic worth, while low volatility stocks are characterized by lower price swings, and quality stocks are identified based on strong financial health and operational efficiency. This multifactor approach seeks to enhance risk-adjusted returns and offer stability in the fund’s performance.
Managed by State Street Global Advisors, the SPDR MSCI EAFE StrategicFactors ETF leverages extensive expertise in international market investing and factor-based strategies. The fund's approach is tailored for investors seeking to diversify their portfolios with high-quality international equities while benefiting from factor-based strategies designed to enhance returns and reduce risk. The fund’s comprehensive strategy aims to offer investors a well-rounded exposure to developed markets beyond North America, focusing on stocks that exhibit desirable investment characteristics.
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