State Street to Introduce Two New ETFs Thursday

State Street's

State Street Global Advisors, the second-largest U.S. ETF sponsor, will introduce two new funds on Thursday. One of the new ETFs will be the SPDR S&P 1500 Value Tilt ETF

. The SPDR S&P 1500 Value Tilt ETF will use a sampling strategy, meaning the ETF will not be required to hold all of the securities in its index. The fund will track the S&P 1500 Value Tilt Index. The Index applies an alternative weighting methodology to the S&P 1500 Index so that stocks with relatively low valuations (i.e., relatively “cheap”) are overweight relative to the S&P 1500 Index and stocks with relatively high valuations (i.e., relatively “rich”) are underweight. In constructing the Index, Standard & Poor's, Inc. (“S&P” or the “Index Provider”) estimates the valuation of each stock in the S&P 1500 Index based on the ratio of its price to its level of earnings, cash flow, sales, book value, and dividends

. S&P weights this data from the last five calendar years to create a composite valuation measure, and ranks all 1,500 index constituents in order of composite valuation. S&P then forms 20 sub-portfolios of approximately equal market capitalization, grouped by composite valuations, SSgA said in the filing. SSgA will also introduce the SPDR S&P 1500 Momentum Tilt

. That ETF will track the S&P 1500 Positive Momentum Tilt Index and also employ a sampling strategy. The Index applies an alternative weighting methodology to the S&P 1500 Index so that stocks with relatively high momentum are overweight relative to the S&P 1500 Index and stocks with relatively low momentum are underweight. In constructing the Index, Standard & Poor's, Inc. (“S&P” or “Index Provider”) estimates the momentum of each stock in the S&P 1500 Index based on its price, according to the filing. Both new ETFs will be passively managed. SSgA had $318.7 billion in assets under management as of October 22,

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