Daily ETF Watch: Hedged Factor Funds Filed

State Street Global Advisors has filed for seven funds that appear to be currency-hedged versions of some of its ETFs tracking MSCI Quality Mix indexes. However, the funds are referred to in the filing by the name “StrategicFactors” rather than Quality Mix.

The funds, like the Quality Mix ETFs, will target the value, low-volatility and quality factors via three single-factor subindexes that are equally weighted within the main index.

The seven proposed ETFs include the following:

• SPDR MSCI EAFE StrategicFactors Currency Hedged ETF
• SPDR MSCI Emerging Markets StrategicFactors Currency Hedged ETF
• SPDR MSCI Australia StrategicFactors Currency Hedged ETF
• SPDR MSCI Canada StrategicFactors Currency Hedged ETF
• SPDR MSCI Japan StrategicFactors Currency Hedged ETF
• SPDR MSCI Switzerland StrategicFactors Currency Hedged ETF
• SPDR MSCI United Kingdom StrategicFactors Currency Hedged ETF

Each one, except for the Switzerland fund, corresponds with an existing “Quality Mix” ETF as follows (including assets under management):

• SPDR MSCI EAFE Quality Mix ETF (QEFA | C-85), $5.3 million
• SPDR MSCI Emerging Markets Quality Mix ETF (QEMM | D-89), $99.1 million
• SPDR MSCI Australia Quality Mix ETF (QAUS | C-90), $9 million
• SPDR MSCI Canada Quality Mix ETF (QCAN | B-83), $14.5 million
• SPDR MSCI Japan Quality Mix ETF (QJPN | C-91), $12.4 million
• SPDR MSCI United Kingdom Quality Mix ETF (QGBR | C-95), $2.4 million

The currency hedges will be achieved via foreign currency forward contracts.

The filing did not include tickers or expense ratios. However, the funds are slated to list on the NYSE Arca.

Contact Heather Bell at [email protected].