SPDR® MSCI World StrategicFactors ETF (QWLD)

ETF SPDR® MSCI World StrategicFactors ETF (SPDW) Summary

Profile: SPDW is an exchange-traded fund (ETF) that tracks the MSCI World StrategicFactors Index. This index focuses on global developed market equities, specifically those with value, momentum, quality, and size characteristics. SPDW follows a passive management strategy, seeking to replicate the performance of the underlying index.

Objective: The primary investment goal of SPDW is to provide long-term capital appreciation through exposure to a diversified portfolio of global developed market stocks with specific value, momentum, quality, and size factors.

Issuer: SPDW is issued by State Street Global Advisors (SSGA), a leading asset management firm with a well-established reputation and a long track record in the market. SSGA manages over $4.3 trillion in assets globally and is known for its expertise in passive investing strategies.

Market Share: SPDW has a significant market share in the global developed market equity ETF space. As of November 2023, it manages over $15 billion in assets, making it one of the largest ETFs in its category.

Total Net Assets: As mentioned above, SPDW’s total net assets are over $15 billion as of November 2023.

Moat: SPDW's competitive advantages include:

• Experienced Management: SSGA is a highly respected asset manager with a team of experienced professionals managing the ETF.
• Diversified Portfolio: The ETF provides exposure to a broad range of global developed market stocks with specific factor tilts, aiming to mitigate single-stock risk.
• Cost-Effective: SPDW has a relatively low expense ratio compared to other ETFs in its category, making it a cost-effective investment option.

Financial Performance: SPDW has historically delivered solid returns, outperforming its benchmark index, the MSCI World Index, over various timeframes. However, past performance is not indicative of future results.

Growth Trajectory: The global developed market equity market is expected to continue growing in the long term, driven by factors such as economic expansion and technological innovation. SPDW, as an ETF tracking this market, is positioned to benefit from this growth.

Liquidity: SPDW has high liquidity, with an average daily trading volume exceeding several million shares. This ensures investors can easily buy and sell the ETF without facing significant price impact.

Market Dynamics: The ETF's market environment is influenced by global economic conditions, interest rate policies, and geopolitical events. Investors should be aware of these factors and their potential impact on the ETF's performance.

Competitors: SPDW's key competitors include:

• iShares MSCI World ETF (URTH)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core S&P 500 ETF (IVV)

Expense Ratio: SPDW has an expense ratio of 0.35%, which is relatively low compared to other ETFs in its category.

Investment Approach and Strategy:

• Strategy: SPDW tracks the MSCI World StrategicFactors Index, passively replicating its performance.
• Composition: The ETF primarily invests in large and mid-cap stocks from developed markets globally, specifically focusing on companies with value, momentum, quality, and size characteristics.

Key Points:

• Diversified global exposure: Provides access to a broad range of developed market stocks.
• Factor-based approach: Aims to enhance returns by selecting stocks with specific value, momentum, quality, and size characteristics.
• Cost-effective: Low expense ratio makes it an attractive investment option.
• Experienced management: SSGA has a strong track record in managing passive investment strategies.

Risks:

• Market risk: The ETF's value is directly influenced by the performance of the underlying stocks, which can be volatile.
• Factor risk: The ETF's performance depends on the continued outperformance of the specific factors it targets.
• Currency risk: SPDW is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing: SPDW is suitable for investors seeking long-term capital appreciation from a diversified portfolio of global developed market stocks with a focus on value, momentum, quality, and size factors. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI: 8.5/10

SPDW receives a strong rating based on its fundamentals. The AI analysis considers factors such as the ETF's financial performance, competitive advantages, market position, and future prospects. The positive aspects include experienced management, a diversified portfolio, low expense ratio, and high liquidity. However, investors should be aware of the associated risks before investing.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• State Street Global Advisors SPDW ETF website
• Morningstar
• Bloomberg
• SSGA fact sheets

This information is intended for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.