On Monday we saw the rollout of three new Exchange Traded Funds from the company that started it all, State Street Global Advisors. The new funds are designed to track three of this market’s most talked about sectors: biotechnology, homebuilders, and semiconductor stocks.
State Street Global Advisors said that these sector SPDRs—short for Standard & Poor’s Depository Receipts and commonly known as "spiders"—will have the following ticker symbols: Biotech SPDR (XBI), Homebuilders SPDR (XHB) and Semiconductor SPDR (XSD).
These three new ETFs will track the performance of specific industries and are benchmarked against the Standard & Poor’s Select Industry Indices. Each index is constructed with an equal-weighted methodology and is rebalanced quarterly in order to prevent a few select stocks from dominating the performance of the index. The expense ratio for each ETF is 35 basis points.