State Street's new sector ETFs mostly hold the sector ETFs it already sells
On Oct. 15, ExxonMobil was 29.5% of State Street's new energy ETF once the older energy fund inside it was counted, against 23.9% in that older fund.
Key takeaways
On Oct. 15, the State Street S&P 500 Energy Market Sector SPDR ETF, XLEM, had 84.7% of its portfolio in the State Street Energy Select Sector SPDR ETF, XLE, a fund the firm has sold since 1998.
State Street Investment Management listed it on Oct. 14, with three others. The new funds are Market Sector SPDRs. The funds they hold are Select Sector SPDRs, and each new ticker is the old one with an M added.
The State Street S&P 500 Technology Market Sector SPDR ETF, XLKM, the State Street S&P 500 Consumer Discretionary Market Sector SPDR ETF, XLYM, and the State Street S&P 500 Consumer Staples Market Sector SPDR ETF, XLPM, held their Select Sector counterparts at 51.8% to 66.3%. XLEM, XLKM and XLPM were the old fund plus stocks. XLYM also held 10.5% in a State Street government money market fund.
Each new fund's largest holding is the Select Sector ETF it already sells
State Street said the new indexes do not cap individual company weights, so they reflect the full weight of the largest companies in each sector. The Select Sector indexes do cap them.
S&P Dow Jones Indices, which maintains those indexes, says capping is applied to keep each index diversified across companies. The four funds the new ETFs hold date to 1998.
In the two energy funds, that difference shows up in ExxonMobil. XLEM held the stock directly, at 9.3%, on top of XLE. Once the shares inside the old fund are counted, ExxonMobil was 29.5% of the new fund, against 23.9% in the old one.
The four charge 0.12%. As of Oct. 16, none had more than $510,000. XLE has $44.2 billion.
From Oct. 12 through Oct. 16, State Street was not alone in listing a product it already had.
Twelve funds began trading
William Blair Investment Management launched its first two ETFs on Oct. 15, the William Blair International Equity ETF, WBIE, and the William Blair Emerging Markets Equity ETF, WBEM, on NYSE Arca. The firm has run an international equity fund since 1992 and emerging-markets portfolios since 1996. As of June 30 it managed $18.5 billion in international equities and $19.8 billion in emerging-markets equities.
"These active ETFs are an evolution in how clients can access capabilities we have offered for decades," Bob Kendall, global head of William Blair Investment Management, said in the firm's announcement.
The William Blair fees in the table are after a waiver. Gross fees are 0.80% for WBIE and 0.90% for WBEM. The adviser has agreed to hold the lower figures through April 30, 2028.
Dimensional Fund Advisors' DFA Intermediate Government Fixed Income Portfolio, DFGV, is an ETF share class of a government-bond portfolio the firm has run since 1990. The class began trading this week, at an expense ratio of 0.14%.
A filing built on the issuer's own ETFs
On Oct. 14, Simplify Exchange Traded Funds filed four funds that would take stock, bond and managed-futures exposure mainly through total-return swaps on ETFs the firm already runs.
Swaps on companies with no public stock
Leverage Shares listed the Leverage Shares MANGOS ETF, MGOL, this week. The fund is actively managed, charges 0.99%, and does not track an index. The firm said it would give exposure to Meta, Alphabet, Nvidia, SpaceX, OpenAI and Anthropic.
As of Oct. 15 that exposure was swaps, not shares. Meta, Alphabet and Nvidia each sat from 21.4% to 21.7%.
SpaceX, OpenAI and Anthropic do not have stock that trades on an exchange. A swap on SpaceX was 20.4%. OpenAI and Anthropic were swaps on tokenized stock, a token standing in for equity in the company, at 7.5% and 7.4%.
Four swaps sit near 21%; OpenAI is 7.5% and Anthropic 7.4%
ETFs in this story
Frequently asked questions
How much of the new energy ETF is the fund State Street already sells?
On Oct. 15, the State Street S&P 500 Energy Market Sector SPDR ETF had 84.7% of its portfolio in the State Street Energy Select Sector SPDR ETF.
What is different about the new sector indexes?
State Street said the new indexes do not cap individual company weights, so they reflect the full weight of the largest companies in each sector.
How big was ExxonMobil in the new energy fund?
Once the shares inside the older fund were counted, ExxonMobil was 29.5% of the new fund, against 23.9% in the old one.
How much do the new funds charge, and how large are they?
The four charge 0.12%, and as of Oct. 16 none had more than $510,000, while the older energy fund has $44.2 billion.
