QEMM | SPDR MSCI Emerging Markets StrategicFactors ETF

QEMM ISSUER

State Street Global Advisors (SSGA), as the adviser to the QEMM issuer, employs a sampling strategy to track the performance of the MSCI Emerging Markets (EM) Factor Mix A-Series Index. This strategy allows flexibility in purchasing a subset of securities from the Index to maintain similar risk and return characteristics. SSGA may choose to invest in a subset of securities or mirror the Index proportions, depending on factors such as the Fund's size and objectives. While the Fund is classified as diversified, it may temporarily become non-diversified due to tracking the Index, potentially resulting in a higher concentration of assets in a limited number of issuers. The Fund typically invests a significant portion, at least 80%, of its assets in Index securities and depositary receipts, including ADRs or GDRs. Additionally, it may invest in other equity securities, cash equivalents, or money market instruments. The Index, sponsored by MSCI, Inc., encompasses large- and mid-cap stocks across 24 emerging markets countries, focusing on value, low volatility, and quality factor strategies. Rebalanced semi-annually, the Index comprises 1,402 securities as of November 30, 2023, with a notable presence in the financial and technology sectors, primarily in China and India. The Fund's diversified holdings span various countries, reflecting the Index's broad representation of emerging markets.

QEMM DIVIDEND

The QEMM, which is advised by State Street Global Advisors, is designed to track the MSCI Emerging Markets (EM) Factor Mix A-Series Index. As an index-tracking fund, its primary objective is to replicate the performance of the underlying index, rather than generating dividend income. However, it's important to note that the dividend policy of the QEMM issuer is subject to the composition of the index it tracks. Since the MSCI EM Factor Mix A-Series Index comprises various securities from emerging markets countries, the dividend yield of the QEMM may vary based on the dividend policies of those constituent companies. Investors seeking dividend income from their investments may need to consider alternative strategies or funds that focus explicitly on dividend-paying securities.

QEMM TRACKING

The QEMM, managed by State Street Global Advisors, aims to closely track the performance of the MSCI Emerging Markets (EM) Factor Mix A-Series Index. To achieve this, QEMM utilizes a sampling strategy, allowing it to hold a subset of securities from the index while maintaining similar risk and return characteristics. State Street Global Advisors may choose to invest in a subset of securities or mirror the index proportions based on various factors, including the fund's size and objectives. While the fund is classified as diversified, it may temporarily become non-diversified due to tracking the index, potentially resulting in a higher concentration of assets in a limited number of issuers. Rebalanced semi-annually, the index encompasses large- and mid-cap stocks across 24 emerging markets countries, focusing on value, low volatility, and quality factor strategies. Although QEMM's performance may not perfectly match the index due to factors such as fees and tracking error, State Street Global Advisors aims to minimize this deviation to provide investors with a close approximation of the index returns.

QEMM CORRELATION

The correlation between QEMM, advised by State Street Global Advisors, and the MSCI Emerging Markets (EM) Factor Mix A-Series Index is integral to understanding its investment strategy. Utilizing a sampling approach, QEMM aims to replicate the performance of the index by investing in a subset of securities while maintaining similar risk and return characteristics. Whether mirroring the index proportions or selecting a subset of securities depends on factors like fund size and objectives. Despite being classified as diversified, QEMM may temporarily become non-diversified due to its index-tracking approach, potentially concentrating assets in select issuers. The MSCI EM Factor Mix A-Series Index, comprising large- and mid-cap stocks across 24 emerging markets, emphasizes value, low volatility, and quality factor strategies. With significant holdings in financial and technology sectors, primarily in China and India, the QEMM offers investors diversified exposure across emerging markets, reflecting the index's broad representation. While tracking error and fees may lead to slight performance deviations, State Street Global Advisors aims to minimize such variances, providing investors with a close approximation of index returns.

QEMM SECTOR

The QEMM, managed by State Street Global Advisors, encompasses a diversified portfolio of securities from various sectors within emerging markets countries. As of the latest available information, a significant portion of the fund comprised companies primarily in the financial and technology sectors. However, the sector composition of the QEMM may evolve over time based on market conditions and changes in the underlying index it tracks, the MSCI Emerging Markets (EM) Factor Mix A-Series Index. This index captures large- and mid-cap representation across 24 emerging markets countries, aiming to reflect the performance of value, low volatility, and quality factor strategies. Given the broad representation of emerging markets within the index, the sector allocation of the QEMM is likely to be diverse, with exposure to various industries such as consumer discretionary, healthcare, energy, and industrials, among others. Investors interested in specific sector exposure within emerging markets may consider analyzing the index constituents or consulting with financial professionals familiar with the QEMM's holdings and investment strategy.

QEMM EXPOSURE

The QEMM, advised by State Street Global Advisors, offers exposure to a broad range of securities across emerging markets countries. Its investment objective is to track the performance of the MSCI Emerging Markets (EM) Factor Mix A-Series Index, which captures large- and mid-cap representation across 24 emerging markets countries. This index aims to represent the performance of value, low volatility, and quality factor strategies. Consequently, the QEMM provides investors with exposure to companies exhibiting these characteristics within emerging markets. The index is diversified across various sectors, including but not limited to financials, technology, consumer discretionary, healthcare, energy, and industrials. By tracking this index, the QEMM offers investors a convenient way to access the growth potential of emerging markets while diversifying across different regions and sectors.