SPDR SSgA Global Allocation ETF (ARCA: GAL)

에 대한 최신 뉴스 SPDR SSgA Global Allocation ETF (ARCA:GAL)

SPDR SSgA Global Allocation ETF

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SGA Funds Management, Inc. primarily invests the assets of the Fund among exchange traded products that provide balanced exposure to domestic and international debt and equity securities. The Fund typically allocates approximately 60 percent of its assets to equity securities, though this percentage can vary based on the Adviser's tactical decisions. The Adviser's investment process relies on proprietary quantitative models as well as the Adviser's fundamental views regarding factors that may not be captured by the quantitative models. The allocations to each asset class will change over time as the Adviser's expectations of each asset class shift.

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Global equity markets have stumbled to start 2016, placing a great premium on asset allocation for advisors and investors. Some exchange-traded funds aim to ameliorate the asset allocation issue, but are limited to doing so <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5933532/focus-5-etf-focuses-on-massive-asset-growth">at the sector level</a>.

	ETFs that have the ability to navigate investors into sturdy sectors and away from those groups are flailing are certainly useful, and some of these funds have proven undoubtedly successful. However, investors can get more. More exposure to more assets, that is, with the SPDR SSGA Global Allocation ETF (SSGA Actice ETF Trust (NYSE: <a class="ticker" href="/stock/gal#NYSE">GAL</a>)).

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6161729/shorts-love-this-etfs-holdings">Shorts Love This ETF&#39;s Holdings</a></bzrelatedlink>
<h3>
	A Closer Look At GAL</h3>

	The $182.7 million SPDR SSGA Global Allocation ETF, which turns four in late April, is an ETF of ETFs, meaning 17 of its 18 holdings are all other ETFs.

	&ldquo;Sector rotation strategies can help investors align investments with their market outlook and position a portfolio to get more from the core. These strategies can take many forms. For instance, in a top-down approach, an investor can underweight or overweight a sector based on market and macroeconomic views such as rising rates or a resilient consumer. Using a bottom-up approach, an investor can underweight or overweight based on a sector&rsquo;s fundamentals or momentum characteristics,&rdquo; said State Street Global Advisors (SSgA) Vice President David Mazza <a href="http://blog.spdrs.com/post/how-to-implement-sector-and-industry-strategies-sector-investing-series-part-3">in a recent note</a>.

	An important element to GAL&#39;s methodology is that it the ETF is not required to be fully invested in stocks or bonds at all times. At the moment, nearly 17 percent of GAL&#39;s weight is allocated to cash. Over the past month, GAL is down 6.5 percent, while the MSCI All Country World Index is down 9.3 percent over the same period.

	GAL&#39;s largest holdings include the SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>), WisdomTree Inter Hedged Eq Fund (NYSE: <a class="ticker" href="/stock/hedj#NYSE">HEDJ</a>), Health Care SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) and the SPDR Barclays Capitl Intrmdt Trm Trs ETF (NYSE: <a class="ticker" href="/stock/ite#NYSE">ITE</a>). GAL&#39;s other sector exposures include consumer discretionary and technology.

	&ldquo;In this current market environment, roughly half of the US large-cap portion of GAL is invested in a traditional US large-cap core exposure via the SPDR S&amp;P 500 ETF. The remainder of the US large-cap exposure is allocated equally, using a sector rotation model across three sectors we favor based on their outlook from a valuation, momentum and sentiment perspective,&rdquo; added Mazza.

	Nearly 23 percent of GAL&#39;s current lineup is allocated to bonds. Though GAL appears to have some of the advantages of an actively managed product, it is a passively managed fund with a reasonable annual fee of 0.35 percent, which is low compared to some sector allocation ETFs.

	Image Credit: <a href="https://pixabay.com/en/domino-hand-stop-corruption-665547/">Public Domain</a>

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A One-Stop ETF For Asset Allocation Strategies

The more recent trend in fund flows has shown that ETF investors are a cost-conscious group. Firms such as Vanguard and Charles Schwab have built successful brands in this industry on the back of rock bottom expense ratios to enhance value for the end-user. After all, lower fees entail a higher return for those seeking an index-based approach.

	This week, Mebane Faber and Eric Richardson of <a href="http://www.cambriafunds.com">Cambria Funds</a> took that concept one step farther by introducing the first ETF with a permanent <a href="http://www.sec.gov/Archives/edgar/data/1529390/000139834414004489/fp0011476_485apos.htm">zero percent</a> management fee.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/interview/14/10/4926111/this-company-offers-a-product-like-customizable-no-fee-etfs">This Company Offers A Product Like Customizable, No-Fee ETFs</a></bzrelatedlink>
<h3>
	Cambria Global Asset Allocation ETF</h3>

	The Cambria Global Asset Allocation ETF (NYSE: GAA) uses a quantitative approach to selecting a diversified basket of global stocks and bonds. This ETF uses a &ldquo;fund of funds&rdquo; approach that selects other low-cost ETFs from Vanguard, iShares, even within the Cambria fund family itself.
<h3>
	Blended Expense Ratio, But No Additional Fee</h3>

	While the underlying holdings have a blended expense ratio of just 0.29 percent, there is no additional management fee added to that for owning GAA.
<h3>
	GAA&#39;s Specifics</h3>

	At launch, the underlying portfolio included 29 diversified ETFs that represent thousands of domestic and foreign securities. The current asset allocation is 50 percent bonds, 43 percent stocks and 7 percent broad-based commodities.

	The advantage of a fund such as GAA is a global multi-asset portfolio with minimal overall expenses, which can be used as a core holding or strategic position. The weightings within the various asset classes will be rebalanced on an annual basis, which removes the burden of restructuring individual holdings from the account side as well.
<h3>
	GAA&#39;s Competition</h3>

	This new ETF will go head to head with established multi-asset funds such as the suite of risk-based investments from <a href="http://www.benzinga.com/topic/barclays">Barclays</a> that includes the iShares S&amp;P Growth Allocation Fund ETF (NYSE: <a class="ticker" href="/stock/aor#NYSE">AOR</a>). In addition, State Street offers the SPDR SSgA Global Allocation ETF (NYSE: <a class="ticker" href="/stock/gal#NYSE">GAL</a>), which charges an expense ratio of 0.35 percent.
<h3>
	Pioneering Ahead</h3>

	Cambria is making a bold move in offering a true zero expense ratio ETF, and clearly hopes to attract investors to its expanding brand of shareholder yield, global value and momentum-based strategies.

	This pioneering effort will hopefully continue to pressure other <a href="http://www.benzinga.com/topic/ETF">ETF</a> providers to continue to evaluate their fee structure and enhance value for investors that favor these vehicles.

New ETFs

Cambria Funds Launches First Zero Expense Ratio ETF

If ETFs were states, traditional, passively managed long equity and bond ETFs would be Texas. Actively managed ETFs would be Rhode Island. ETF <a href="http://www.benzinga.com/markets/bonds/12/04/2521115/review-of-recent-etf-filings">sponsors are trying to change that, a fact highlighted by State Street's (NYSE: </a><a class="ticker" href="/stock/stt#NYSE">STT</a>) State Street Global Advisors bringing three new actively managed products to market late last month

One of SSgA's new additions to its actively managed stable is the SPDR SSgA Global Allocation ETF (NYSE: <a class="ticker" href="/stock/gal#NYSE">GAL</a>), which following its April 25 debut has managed to rake in $5.74 million in assets under management. One thing that is immediately noticeable about the SPDR SSgA Global Allocation ETF is its expense ratio and we mean that in a good way. An annual fee of just 0.35% is low in the world of actively managed ETFs and it's far superior to average mutual fund expense ratio.

As is the case with some other actively managed and asset allocation ETFs, GAL is an ETF of ETFs. Meaning its 18 holdings are all other ETFs. Seventeen of them are other SPDRs funds with the PowerShares DB Gold Fund (NYSE: <a class="ticker" href="/stock/dgl#NYSE">DGL</a>) being the outlier. DGL receives an allocation of just 1%.

GAL does offer global exposure, but investors should be clear that does not mean ex-U.S. exposure as the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) accounts for 23% of GAL's weight. The SPDR S&amp;P World ex-U.S. ETF (NYSE: <a class="ticker" href="/stock/gwl#NYSE">GWL</a>) receives an allocation of almost 16% while the SPDR Barclays Capital High Yield Bond ETF (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>), the second-largest junk bond ETF, receives a weight of over 11%.

Other asset classes represented within GAL include international corporate bonds, REITs, emerging markets equities, dividend stocks, small-caps, mid-caps and international Treasuries. Given GAL's current asset class mix, it would be reasonable to expect that the ETF pays a dividend and offers a decent yield, but yield information on the fund is not currently available on the <a href="https://www.spdrs.com/product/fund.seam?ticker=GAL">SPDRs Web site</a>.

It's tough to pass judgment given that GAL is still in its infancy, but SSgA's timing in rolling out its new actively managed suite appears shrewd because there is some wind at the backs of actively managed ETFs.

"Although we estimate that actively managed ETFs represent roughly 5% of all the assets in U.S.-traded ETFs, we see interest on the rise, as evidenced by the number of such ETFs being offered and launches by various fund managers. We think that both existing fund companies and new entrants will increasingly be looking at actively managed ETFs to both defend market share, and to attract new money," S&amp;P Capital IQ said in a recent research note.

And there's certainly room for actively managed funds such as GAL to grow. Total AUM at U.S.-listed ETFs and ETNs is about $1.2 trillion, but <a href="http://www.benzinga.com/markets/bonds/12/05/2553109/s-p-sees-some-momentum-for-actively-managed-etfs">actively managed funds had a less than $6 billion slice of that pie last month</a>.

While actively managed ETFs as a group have flown under the radar over the past several, some fund sponsors such as AdvisorShares, PIMCO and WisdomTree (Nasdaq: <a class="ticker" href="/stock/wetf#Nasdaq">WETF</a>) have found success with these products. State Street certainly has the capability to promote GAL and its other active funds, drawing in assets along the way. Whether or not GAL rewards investors for their good faith, well, that remains to be seen.

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SPDR SSgA Global Allocation ETF

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