State Street Cuts Expense Ratios of 10 ETFs

State Street Global Advisors says it has dropped the total expense ratios (TERs) for 10 funds in its suite of SPDR Portfolio ETFs, effective today.

The changes include a cut from 3 basis points (bps) to 2 for the SPDR Portfolio S&P 500 ETF. For the SPDR Portfolio Emerging Markets ETF, the expense fell from 11 basis points to 7; it declined from 10 to basis points to 5 for the SPDR Portfolio High Yield Bond ETF.

The SPDR Portfolio ETFs’ median cost is now 95% less expensive than the median cost of a U.S.-domiciled mutual fund, according to the asset manager.

Over a decade, a portfolio invested at the median U.S.-domiciled mutual fund costs would have lost 8.2% of starting principal to higher fees, State Street said.

“Low-cost ETFs are attractive to buy-and-hold investors who want to limit the impact of fees on the long-term performance of their portfolios,” said Sue Thompson, who heads SPDR Americas Distribution at State Street Global Advisors.