SPDR Drops KBW for Sector Indices

State Street Global Advisors said it would cease to track indices licensed by investment bank Keefe Brunette & Woods in five of its financial industry SPDR ETFs.

The ETFs will now track similar indexes from Standard & Poor’s. The ETF names will be changed to reflect the new indices they track, but the ticker symbols and expense ratios will remain the same. The new funds will have a minimum of 35 stocks each. The changes take effect today. State Street says the new indices track the same market segments as the ones they replace. The SPDR KBW funds have the same name as their index, such as the SPDR KBW Bank ETF tracks the KBW Bank Index.

The SPDR KBW Bank ETF (KBE) will now be called the SPDR S&P Bank ETF and track the S&P Banks Select Industry Index.

The SPDR KBW Capital Markets ETF (KCE) will change its name to SPDR S&P Capital Markets ETF and follow the S&P Capital Markets Select Industry Index.

The other three:

SPDR KBW Insurance ETF (KIE) becomes SPDR S&P Insurance ETF and tracks the S&P Insurance Select Industry Index

SPDR KBW Mortgage Finance ETF (KME) becomes SPDR S&P Mortgage Finance ETF and tracks the S&P Mortgage Finance Select Industry Index.

SPDR KBW Regional Banking ETF (KRE) becomes SPDR S&P Regional Banking ETF and tracks the S&P Regional Banks Select Industry Index.

State Street said it wanted to unify its industry ETFs around a single index provider. It added the S&P indices provide greater diversification than the KBW indices.

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