State Street Global Advisors’ SPDR® S&P 500® ETF Trust Celebrates its 30 Year Anniversary

The First US ETF Remains the Liquidity Leader as Investors Enter the New Year Uncertain About the Market and Economy

More than half of US investors with ETFs in their portfolio believe ETFs have made them a better investor.

Nearly 60% say ETFs have improved the overall performance of their portfolio.

Globally, just over half of investors agree ETFs offer more liquidity to respond more rapidly to market changes and mitigate risk better in volatile markets compared to other investments.

In the US, pessimism about the country’s economic outlook in the next 12 months has increased more than 50% since surveyed three years ago (25% to 38%).

US investors with ETFs in their portfolios are more likely to be optimistic about their financial future over the next 12 months than those without (75% vs. 68%).

BOSTON–(BUSINESS WIRE)–State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), marked the 30th anniversary of the first ever US-listed exchange traded fund (ETF) this month, the SPDR S&P 500 ETF Trust (SPY). Launched on January 22, 1993, SPY is the world’s largest ETF with more than $355 billion in assets and the most heavily traded security in the world with an average daily trading volume of $39 billion.*

“SPY gave birth to an industry that has democratized investing, giving both investors large and small access to institutional-grade solutions that offer efficient, cost-effective exposures to all corners of the global investment market,” said Rory Tobin, head of State Street Global Advisors’ Global SPDR ETF Business. “Born out of the stock market crash of 1987, SPY has demonstrated its resilience throughout major market events from the burst of the dot-com bubble to the global financial crisis of 2008, and more recently, the extreme pandemic-era volatility.”

“SPY disrupted the asset management industry and benefitted investors in ways that exceeded even the most ambitious expectations,” said Sue Thompson head of SPDR Americas Distribution at State Street Global Advisors. “Three decades since SPY’s launch, investors now have access to more than 8,000 ETFs globally, but none come close to offering the liquidity of SPY, which provides transaction cost benefits that can lower total cost of ownership for investors.”

“S&P Dow Jones Indices congratulates State Street Global Advisors on this momentous occasion. This 30-year milestone and the tremendous growth of ETFs during this time, reflect the transformational benefits being provided to all end investors,” said Dan Draper, Chief Executive Officer at S&P Dow Jones Indices.

A History Steeped in Liquidity & Resiliency

Since SPY’s launch, US-listed ETFs have amassed $6.5 trillion in assets.*

Toward the end of 2022 SPY was trading three times more than Apple (AAPL) — the largest security in the world by market cap.** That volume, combined with the size of SPY’s assets, performance, liquidity, and resilience, has been vital to investors as they construct asset allocation portfolios and navigate extreme market events.

In fact, as the market began to tumble during the onset of COVID-19, SPY became the first ETF to ever trade more than $100 billion in a single day on February 28, 2020.**

“Throughout each market turn, SPY’s unparalleled liquidity profile provided investors with the flexibility to buy and sell shares quickly, easily, and cost-efficiently,” Tobin added.

ETF Impact Survey shows the positive impact ETFs have on investors today

Today, ETFs have become core building blocks for investors making asset allocation decisions. The expansion of ETFs to include different types of funds in a variety of asset classes further added to their appeal.

Recent findings from State Street Global Advisors ETF Impact Survey reaffirm the popularity of ETFs as a vehicle that can help investors remain confident in their investing acumen. The survey was designed to understand investor attitudes and perceptions about ETFs, the market and the economy in the US, APAC and EMEA.

Overall, the perceived benefits ETFs have brought to investors globally is overwhelmingly positive- whether or not they even own ETFs. More than half agree ETFs are an investor-friendly investment product (58%) and are better diversified than other investment products (54%).

Furthermore, investors who do have an existing ETF holding report that ETFs have improved the overall performance of their portfolio (73% globally and 59% in the US alone). And, the majority believe ETFs have made them a better investor (67% globally and 53% in the US).

Liquidity Remains Important Amidst Investor Uncertainty on Markets and Economy

Globally, nearly seven-in-ten investors believe the volatility in the stock market is going to continue for at least the next 12 months. Six-in-ten investors agree that when there is volatility in the market it is important to have more liquid investments.

Regardless of whether they have ETFs in their portfolio, globally, more than half of investors agree ETFs offer more liquidity to respond rapidly to market changes (52%) and can mitigate risk better in volatile markets compared to other investments (51%).

More Room for Growth and Innovation

Despite the explosive growth of the ETF industry since SPY’s launch, the survey suggests the industry still has a long runway for expansion in the US, as just 40% of investors say they own an ETF in their portfolio, which is considerably lower than stocks (83%), mutual funds (67%) and bonds (53%). When asked if they plan to buy ETFs in the next 12 months, 50% of investors globally indicate they do, compared to 37% in the US.

About State Street Global Advisors’ ETF Impact Survey, November – December 2022

State Street Global Advisors, in partnership with A2Bplanning and Prodege, conducted an online survey among individual investors in the US, EMEA (UK, Switzerland, Netherlands, Israel) and APAC (Singapore, Japan, Australia). Data was collected from November 30 – December 12, 2022. In the US, data was collected from a nationally representative sample of 1,000 adults 18+, and then filtered for analysis among 287 Individual Investors with investable assets of $250,000 or more.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. The funds provide investors with the flexibility to select investments that are aligned to their investment strategy. For more information, visit www.ssga.com.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $3.48 trillion† under our care.

*Pensions & Investments Research Center, as of 12/31/21.

†This figure is presented as of December 31, 2022 and includes approximately $58.60 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

*Bloomberg Finance L.P., State Street Global Advisors, as of December 31, 2022.

**Bloomberg Finance L.P., as of December 12, 2022

Important Risk Disclosures

Investing involves risk including the risk of loss of principal.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®, SPY®, SPX®, US 500 and The 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The SPDR S&P 500 ETF Trust (“SPY”) is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.

Distributor: ALPS Distributors, Inc., member FINRA, is distributor for SPDR® S&P 500®, SPDR® S&P MidCap 400® and SPDR® Dow Jones Industrial Average, all unit investment trusts. ALPS Distributors, Inc. is not affiliated with State Street Global Advisors Funds Distributors, LLC.

Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit ssga.com. Read it carefully.

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Exp. Date: 01/31/2024

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Contacts

Deborah Heindel

+1 617 662 9927

DHEINDEL@StateStreet.com