State Street Global Advisors (SSGA) has cut the fee of its global equity ETF alongside its euro government bond ETF.
SSGA will reduce the fee of the SPDR MSCI ACWI UCITS ETF (ACWD) from 0.40% to 0.12%, with the uro hedged and US dollar hedged product’s fee reduced from 0.45% to 0.17%.
The move makes ACWD the second cheapest on the market, behind the Amundi Prime All Country World UCITS ETF (WEBG), with a total expense ratio (TER) of 0.07%.
The TER undercuts the Invesco FTSE All-World UCITS ETF (FWRA) which launched last year, with a TER of 0.15%.
State Street will also cut the fee of the SPDR Bloomberg Euro Government Bond UCITS ETF (SYBB) from 0.10% to 0.07%.
The fee cut matches the TER of the iShares Core Euro Government Bond UCITS ETF (SEGA) and the Vanguard EUR Eurozone Government Bond UCITS ETF (VETA).
The Amundi Prime Euro Govies UCITS ETF (PRIR) remains the cheapest in Europe, with a TER of 0.05%.
The ETF industry has seen a regular cadence of fee cuts from issuers over the last 12 months in a bid to stay competitive, with SSGA making a headline fee cut of its $5.5bn SPDR S&P 500 UCITS ETF (SPY5), reducing its TER from 0.09% to 0.03% and making Europe’s cheapest S&P 500 ETF.
