State Street Launches Four Market-Cap-Weighted S&P 500 Sector ETFs

State Street Investment Management has launched four new S&P 500 Market Sector SPDR ETFs, expanding its nearly $400 billion global sector ETF franchise. The funds cover Consumer Discretionary (XLYM), Consumer Staples (XLPM), Energy (XLEM) and Technology (XLKM). Unlike State Street's existing Select Sector SPDR ETFs, the new products track market-capitalization-weighted S&P 500 sector indexes without capping individual company weights, allowing larger constituents to retain their full benchmark weight. Each ETF uses a rules-based strategy that may combine holdings in its corresponding Select Sector SPDR ETF, individual stocks and derivatives to achieve closer index tracking. The new suite targets benchmark-aware investors, asset allocators and model portfolio builders seeking sector exposure that more closely reflects the composition of the underlying S&P 500 sectors.