Daily ETF Watch: New Euro Small-Cap ETFs

SSgA is looking to give investors a sample of European small-caps.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

SSgA is looking to give investors a sample of European small-caps.

State Street Global Advisors has put into registration a pair of proposed ETFs that focus on European small-cap securities at time when developed European markets have not only been recovering from the region’s debt crisis, but are near all-time highs.

The SPDR Stoxx Europe Small Cap 200 ETF and the SPDR Euro Stoxx Small Cap ETF will track Stoxx indexes and employ a sampling strategy, which means that the funds are not required to purchase all of the securities represented in the index, according to a regulatory filing.

Instead, the funds may purchase a subset of the securities in the index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the indexes.

The filing comes as the FTSE 100 ended Thursday’s session at 6,788.49, within reach of the all-time closing high of 6,930 on Dec. 30, 1999. Stateside, the S&P 500 Index finished the session at a new record high of 1,877.03 despite weak private sector jobs data from payroll company ADP.

Filings

The VelocityShares Equal Risk Weighted Large Cap ETF (ERW | C-73) is tweaking its investment strategy from a “non-diversified” fund to a “diversified” fund, which was effective Feb. 18, according to a regulatory filing.

 

ERW, which was launched last July and currently manages some $30 million in assets, now won’t be allowed to buy more than 5 percent of any security of its total assets or acquire more than 10 percent of the outstanding voting securities of any one issuer.

 

Hung Tran is a former staff writer for etf.com.