Daily ETF Watch: ‘Innovation’ Funds Planned

Aug 28, 2015

Reviewed by: Heather Bell

Edited by: Heather Bell

A trio of recent filings from State Street Global Advisors outline the firm’s plans for growth-focused ETFs based on indexes provided by FactSet.

The three funds will target sectors and subsectors of FactSet’s company classification system in the areas of manufacturing, technology and health care. They include the following:

Although the funds carry the name “Innovative,” they do not have screens for that characteristic. Growth seems to be their primary focus.

Eligible companies for all three funds must rank in the top quartile of their peer groups in terms of revenue growth and have float-adjusted market capitalizations of at least $400 million to $500 million, depending on liquidity. All components must be stocks or American depository receipts listed on a U.S. exchange.

While the manufacturing and health care funds will include only companies that FactSet classifies within the industrial manufacturing or health care sectors, respectively, the technology fund will include companies from both the technology sector and the electronic media subsector, which falls under the media sector. The components in the funds are equally weighted.

The filings did not include expense ratios or tickers, but they did note that the funds would list on the NYSE Arca..

Contact Heather Bell at [email protected].

Heather Bell

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.

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