State Street Global Advisors (SSGA) has launched a range of ten world sector SPDR exchange-traded funds (ETFs) on the Euronext Exchange.
The sectors are wide ranging, including consumer staples, technology and financials.
The move follows last year’s launch of US sector equity ETFs on the Deutsche Börse, which covered the same sectors but was limited to S&P 500 companies.
The launch coincides with a merger of assets from existing French-domiciled global equity sector funds and the portfolio management of these ETFs will be based in Paris, sitting in the same team that has been managing the French-domiciled world sector index funds for the past 15 years.
SSGA says it is experienced at sector investing and has around $100 billion (€86.6 billion) in global sector assets under management.
The firm claims it has the broadest range of physically replicated sector ETFs in Europe and says that investing in sectors enables investors to precisely target the drivers of risk and return. It adds that by investing in sector ETFs, it’s possible to adjust exposures simply and cost-efficiently and respond to changes in the economic cycle.
“In the current economic environment, investors would do well to consider a sector rotation strategy. It can add an important layer of diversification and control to multi-asset portfolios,” said Alexis Marinof, head of SPDR ETFs for Europe, Middle East and Africa.
SSGA offers 99 ETFs in Europe with assets under management of $14 billion.
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