Select Sector SPDRs Accelerates Dividend Payout, Slashes Transaction Fees; Enhances ETFs' Benefits for Shareholders and Authorized Participants.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Select Sector SPDRs ("SPDRs"), a family of exchange-traded funds (ETFs) that divide the S&P 500 into nine individual sector funds, is accelerating its dividend payout schedule so that investors will receive their quarterly dividends eight (8) calendar days after the record date of each distribution. SPDRs will also cut the transaction fee for creating or redeeming creation units to $500, half its former level. Both changes take effect September 1, 2006. Select Sector SPDRs will continue to declare dividends quarterly and set the third Friday of each calendar quarter month as the ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for its nine ETFs. The number of days it takes to pay the dividends out, however, will be cut from approximately 35 to approximately 10. "Sector SPDR SPDR The Standard and Poor's depositary receipt. This is a tracking stock which trades like an index mutual fund which follows the S&P 500. It trades continuously. SPDR See Standard amp; Poor's Depositary Receipt (SPDR). shareholders will now be able to count on collecting their dividends closer to quarter-end instead of waiting until the following month," said James Ross James Ross can refer to:
The $500 transaction fee applies to authorized participants -- typically broker dealers or other large institutional investors -- that create or redeem creation units, the baskets of stocks that underlie ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). shares. Creation units are created or redeemed in 50,000 share increments, and the same fixed fee applies to every creation or redemption transaction, regardless of the number of units involved. This transaction fee was formerly $1,000. "Reducing participants' costs should further enhance the liquidity of Sector SPDRs shares," said Dan Dolan, Director - Wealth Management Strategies, Select Sector SPDR Trust. "Select Sector SPDR Trust has worked closely with SSgA Funds Management, Inc., to effect these positive changes for investors and authorized participants, and our mutual goal is to make Select Sector SPDRs the investment of choice for smart, efficient sector investing." About Select Sector SPDRs Select Sector SPDRs are unique ETFs that divide the S&P 500 into nine sector index funds: Consumer Discretionary, Consumer Staples Consumer Staples The industries that manufacture and sell food/beverages, tobacco, prescription drugs, and household products. Notes: Proctor and Gamble would be considered a consumer staple company because many of its products are household and food related. , Energy, Financials, Healthcare, Industrials, Materials, Technology and Utilities. Select Sector SPDRs allow investors to customize their portfolios by picking and weighting the sectors to meet specific investment goals. Select Sector SPDR shares are actively traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. throughout the trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. . SSgA Funds Management, Inc. serves as the Adviser to the Trust and, subject to the supervision of the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. , is responsible for the investment management of the Select Sector SPDR Funds. An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus which contains this and other information, visit www.spdrindex.com/common/prospectus.pdf. Please read the prospectus carefully before investing. All ETFs are subject to risk, including possible loss of principal. Sector ETF products are also subject to sector risks and non-diversification risks, which may result in greater fluctuations than the overall stock market. The Select Sector SPDR is a trademark of the McGraw-Hill Companies, Inc. and has been licensed for use. The stocks included in each Select Sector Index were selected by the compilation agent. The composition and weighting of each Index can be expected to differ to that of any similar index that is published by Standard & Poor's. Select Sector SPDRs bear a higher level of risk than more broadly diversified funds. ALPS Alps, great mountain system of S central Europe, c.500 mi (800 km) long and c.100 mi (160 km) wide, curving in a great arc from the Riviera coast on the Mediterranean Sea, along the borders of N Italy and adjacent regions of SE France, Switzerland, SW Germany, and Distributors Inc., a registered broker-dealer, is the distributor for the Sector SPDR Trust. |
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