Select Sector SPDRs Lowers Fee by 8.7%

The Select Sector SPDRs family of ETFs reported on Tuesday it lowered the expense ratio on all nine ETFs by two basis points, or 8.7%,, to 0.21% from 0.23%. The change is effective Jan. 31.
Launched in 1998, the Select Sector SPDRs were the first ETFs to track market sectors and originally charged an expense ratio of 0.65%. The family divides the S&P 500 index into nine sector index funds

· Consumer Discretionary SPDR (XLY), which equals 7.85% of the estimate weight of the S&P 500 as of Feb. 9.
· Consumer Staples SPDR (XLP) – 12.34% estimate weight of S&P 500
· Energy SPDR (XLE) – 14.26% of S&P 500
· Financials SPDR (XLF) – 10.97% of S&P 500
· Health Care SPDR (XLV) – 15.69% of S&P 500
· Industrials SPDR (XLI) – 10.65% of S&P 500
· Materials SPDR (XLB) – 3.11% of S&P 500
· Technology SPDR (XLK) – 20.68% of S&P 500
· Utilities SPDR (XLU) – 4.45% of S&P 500
As of Feb. 6, together the nine held more than $19.8 billion in assets. In 2008, they traded an average of 260 million shares per day.

For more on Select Sector SPDRS see ETFs for the Long Run, page 35.

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