"Product innovation is a hallmark of the Amex, and we are extremely proud to have created such a revolutionary investment product in the SPDR," said Amex Chairman and CEO Salvatore F. Sodano. "As ETFs have surged in popularity and as investors have poured $100 billion into our 122 ETFs over the last ten years, investors see the inherent benefits that ETFs offer: tax efficiency, diversification and transparency."
ETFs are akin to index funds that trade like a single stock. They are liquid and easy to use, and offer diversification, market tracking, low expenses* and tax efficiency. ETFs offer a flexible mechanism to get needed exposure, while at the same time are more transparent and provide greater control than traditional mutual funds.
The Amex pioneered the concept of ETFs in the U.S. in 1993 with the introduction of trading in SPDRs - Standard & Poor's Depositary Receipts (AMEX: SPY), an exchange-traded unit investment trust based on the Standard & Poor's 500 Index.
Noted Rik Kranenburg, executive vice president, Standard & Poor's, "The introduction of the SPDR ten years ago by the Amex forever changed the world of index investing. Early on, professional and institutional investors around the globe embraced SPDRs for their low cost, ease of use and flexibility as portfolio management and trading tools. Today, SPDR is the largest and one of the most actively traded ETF product and remains at the head of the curve in bringing ETF investing to retail markets and individual investors."
In celebration of the SPDR's revolutionary mark in the investment world on January 29, the Amex will hold special events marking the anniversary, including a special bell ringing ceremony by New York City Mayor Michael Bloomberg.
"The SPDR was a truly ground-breaking product when we introduced it to investors in partnership with the American Stock Exchange ten years ago," said Tim Harbert, chairman and chief executive officer of State Street Global Advisors. "This milestone combined with the strong trading volumes of ETFs overall, clearly signal the value investors attribute to these products."
