Global advisory firm launches multi-factor ETF

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A global advisory firm has launched a world multi-factor ETF on the ASX.

State Street Global Advisors, the asset management arm of State Street Corporation, announced the launch of the SPDR MCSU World Quality Fund Mix on the ASX. The fund will track the MSCI World Quality Mix Index and provide investors access to an equally weighted combination of the MCSI Value Weighted Index, the MSCI Minimum Volatility Index and the MSCI Quality Index.

"Smart beta is a form of investment management that represents an evolution in indexing. Its passive attributes are derived from an easily replicated, transparent, rules-based, and cost-effective approach within a wide investment universe. It shares some similarities with active management, due to the active choice investors need to make about which factor exposures to target. These strategies can potentially outperform a standard market cap benchmark by using non-market cap security weights," the company said in a release.