SSgA Expects Capital Gains On 12 ETFs

December 07, 2009

 

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.

 


ETF Ticker % NAV
SPDR S&P KBW Mortgage Finance
KME
0.33%
SPDR Barclays Capital 1-3 Month T-Bill
BIL
0.01%
SPDR Barclays Capital Intermediate Term Treasury
ITE
0.15%
SPDR Barclays Capital Aggregate Bond
LAG
1.65%
SPDR Barclays Capital Mortgage Backed Bond
MBG
1.52%
SPDR Barclays Capital Intermediate Term Credit Bond
ITR
0.13%
SPDR Barclays Capital Long Term Credit Bond
LWC
0.32%
SPDR Barclays Capital Convertible Bond
CWB
0.42%
SPDR Barclays Capital Short Term International Treasury Bond
BWZ
0.04%
SPDR S&P International Mid Cap
MDD
3.22%
SPDR S&P Emerging Markets Small Cap
EWX
1.45%
SPDR S&P International Technology Sector
IPK
0.06%

 

The data is projected through Nov. 12 and could change by year end.

 

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