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By Javier Simon editors@strategic-i.com | November 23, 2016
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SSGA to Introduce Proprietary Indexes to Replace Terminated Russell Indexes

State Street Global Advisors (SSGA) has announced that underlying indexes tracked by the SPDR Russell 1000 Low Volatility exchange-traded fund (ETF) and the SPDR Russell 2000 Low Volatility ETF will be changed. The move is a result of FTSE Russell’s decision to terminate the Russell 1000 Low Volatility Index and the Russell 2000 Low Volatility Index.

SSGA will introduce proprietary indexes to replace the two Russell Indexes being terminated. Beginning on or about December 14, 2016, the name of the SPDR Russell 1000 Low Volatility ETF (LGLV) will change to the SPDR SSGA US Large Cap Low Volatility Index ETF (LGLV), and LGLV will seek to track the SSGA US Large Cap Low Volatility Index. Also beginning on or about December 14, 2016, the name of the SPDR Russell 2000 Low Volatility ETF (SMLV) will change to the SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV), and SMLV will seek to track the SSGA US Small Cap Low Volatility Index. The gross and net expense ratios of both funds will remain at 0.12%.

“We are excited to leverage our extensive index capabilities, as well as quantitative driven research, to offer an innovative solution for investors who seek to mitigate volatility in an uncertain market,” says Nick Good, co-head of the Global SPDR business at State Street Global Advisors. “By self-indexing we can continue to offer proprietary small-and-large cap low volatility ETFs to our current and future SPDR clients.”

State Street Global Advisors (SSGA) is the asset management business of State Street Corporation.