First MSCI World Small Cap Index ETF unveiled

State Street Global Advisors’ latest launch will allow investors to capture the “small cap premium”.

First MSCI World Small Cap Index ETF unveiled

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Created to help investors capture the “small cap premium”, State Street said its new instrument would include representations from smaller, listed companies in two dozen countries dotted around the globe.

The new UCITS ETF has been listed on Deutsche Börse, Xetra, and its constituent stocks will all be based in developed markets.

The SPDR MSCI World Small Cap UCITS ETF complements SSgAs existing range of small cap funds, which includes the SPDR MSCI Europe Small Cap UCITS ETF and SPDR MSCI Emerging Market Small Cap UCITS ETF.

Commenting on the launch, Eleanor Hope-Bell, head of SPDR UK at SSgA, said: “Small caps are an attractive segment of the market offering the potential for high returns and greater diversification within a portfolio.

“Small caps also tend to outperform large cap stocks over time. MSCI World Small Cap, for example, has outperformed MSCI World in the last three, five and ten years. This investment tool will help investors capture the ‘small cap premium’ identified in academic research globally”.
 

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