Asset management giant State Street has announced reduced fees for selecting core ETFs, impacting approximately half of the SPDR Portfolio ETF suite. The affected funds include those focused on U.S. stocks, foreign stocks, and fixed income. Collectively, these 10 funds hold around $77 billion in assets. The fee reductions, which take effect on August 1, come as the funds achieve a grander scale, providing State Street with the opportunity to lower the total expense ratios. According to Sue Thompson, head of SPDR Americas distribution at State Street Global Advisors, the lineup has been highly successful and is aimed at smaller investors with a long-term investment approach. Compared to similar funds like the SPDR S&P 500 Trust (SPY), the SPDR Portfolio ETFs have lower per-share prices, making it more accessible for investors to build a diversified portfolio by purchasing total shares.

While the expense ratios of ETFs have been consistently decreasing in recent decades, Thompson does not foresee the SPDR fund expenses reaching zero due to the inherent costs associated with running such funds. However, State Street plans to continue sharing the benefits of scale by passing on savings to its customers. Overall, the lowering of expense ratios has been a significant win for investors, particularly smaller ones, offering cost-efficient opportunities to access diversified investment options.