State Street Global Advisors expects 12 of its exchange-traded funds will pay capital gains to investors by the end of the year.
While they represent only a small part of the company’s total lineup of ETFs, it’s worth noting that at this time last year, SSgA projected capital gain distributions in only three of its more than 80 ETFs. And when it comes to ETFs, limited capital gains passed on to investors are a testament to the tax advantages inherent to ETFs over mutual funds.
Note also that the announcement comes at a time when most other ETFs are projecting near-zero capital gains for 2009. But SSgA is not alone. Just last week, Direxion projected that 11 of its ETFs—or 50 percent of its offerings—would pay significant distributions to investors by the end of year, anywhere from 7.5 to 14.7 percent of net asset value per share.
This year, with a few exceptions, most of the 12 SSgA ETFs making capital gains distributions will see small payouts, well under 1 percent of NAV per share, and the majority of them will be short-term capital gains. Still, the SPDR S&P International Mid Cap ETF (NYSEArca: MDD) will top the list with a capital gain distribution of $0.869, or 3.22 percent of NAV.
SPDR Barclays Capital Aggregate Bond ETF (NYSEArca: LAG), SPDR Barclays Capital Mortgage Backed Bond ETF (NYSEArca: MBG) and SPDR S&P Emerging Markets Small Cap (NYSEArca: EWX) follow closely behind, with payouts around 1.5 percent of NAV.
|SPDR S&P KBW Mortgage Finance||
|SPDR Barclays Capital 1-3 Month T-Bill||
|SPDR Barclays Capital Intermediate Term Treasury||
|SPDR Barclays Capital Aggregate Bond||
|SPDR Barclays Capital Mortgage Backed Bond||
|SPDR Barclays Capital Intermediate Term Credit Bond||
|SPDR Barclays Capital Long Term Credit Bond||
|SPDR Barclays Capital Convertible Bond||
|SPDR Barclays Capital Short Term International Treasury Bond||
|SPDR S&P International Mid Cap||
|SPDR S&P Emerging Markets Small Cap||
|SPDR S&P International Technology Sector||
The data is projected through Nov. 12 and could change by year end.