The company said it is the first exchange traded fund (ETF) to provide U.S. investors with access to equities in the mortgage finance industry.
The SPDR KBW Mortgage Finance ETF seeks to track the total return performance of the KBW Mortgage Finance Index, a modified market-capitalization weighted index of the stocks listed on U.S. stock markets comprising of pure mortgage players, mortgage processors, title insurers, homebuilders, and banks and thrifts where mortgage loans dominate the loan book.
Created and maintained by Keefe, Bruyette & Woods, Inc., a full-service investment bank specializing in the financial services industry, the KBW Mortgage Finance Index included 24 stocks as of March 31, 2009. The Fund’s expense ratio is 0.35%.
“The introduction of KME strengthens our suite of SPDR KBW ETFs, which are designed to help investors express a tactical view on industries within the financial services sector,” said Anthony Rochte, senior managing director at State Street Global Advisors in a news release.
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