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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Thoughts on JEPI?
    Thanks for these comments! The almost 12% current yield looks appealing, but for how long? Excellent article Mark, thanks. My parents do own some treasuries and hopefully they'll buy more. A risk free 5% looks great.
    Thanks!
  • BONDS, HIATUS ..... March 24, 2023
    @hank
    Being There. A fine example of many things human. If I were a Prof. of Poly. Sci., Psychology or related class; the 2h, 10 min. movie would be required with a 500 word overview from the student. No ChatGTP. In class write only.
    Peter Sellers, Shirley MacLaine and supporting cast were excellent in the 1979 movie.
  • Your tax dollars at work - US Treasury/Savings Bonds
    When a paper savings bond is not received, one fills out Treasury Dept Form 3062-4.
    https://www.treasurydirect.gov/forms/sav3062-4.pdf
    For Series EE and Series I bonds, we no longer issue substitute bonds in paper form. We issue those substitute bonds in electronic form, in our online system.
    Really? Just 10 months after the USPS lost a $50 savings bond (part of a 2022 tax refund), the Treasury Department issued me a substitute paper savings bond.
    Now I have to invest 1¼% (63¢ stamp) to mail it back. Maybe by 2024 I'll finally have it in my Treasury Direct account.
  • Thoughts on JEPI?
    One downside to JEPI - "JEPI may be tax-inefficient, as distributions from the fund may be taxed as income, and dividends from underlying stock holdings are not considered qualified because of the offsetting options positions."
    I thought this was a pretty good discussion of JEPI with regard to which investors it might it be appropriate for, which type of account (taxable, IRA etc.) and what to expect going forward. From Dividend Sensei on Seeking Alpha:
    JEPI: This 12% Yielding ETF Is Perfect For 2 Kinds Of Investors
  • Jamie Dimon says we might get to 6%
    No one needs to give you permission to ignore the distinction(s) I have made. Surely, you don't intend to take the side of criminals over the victims of crime? And I'm still against redlining. larryB
    *******
    crash. Your post rues the day redlining went away.
    Completely false. And as gently as I can, I want to add: PLEASE don't tell me what I think. :)
    @crash - You have an opportunity here to clarify what you wrote.
    As @larryB observed, your post (regardless of whether it accurately represents what you think) seems be saying that once "those people" were no longer confined to redlined neighborhoods (redlining eliminated), crime spread out from those neighborhoods to everywhere. Post hoc ergo propter hoc?
    To bring this (somewhat) back to investing, home ownership is often cited (at least by the real estate industry :-)) as an important way for people to build wealth. Redlining made it impossible for many people to build wealth that could be transferred to future generations. Saying that people should be able to live wherever they can afford to speaks only to ongoing practices of steering, of discriminatory mortgage lending, appraisal discrimination, etc. It doesn't take into account the impact of past redlining on the ability of today's families to afford housing.
    homeownership has been a central way of building wealth ... certainly all throughout the post-war period; the wake of World War II when the suburbs opened up. Although ... it was not an avenue that was open to many people of color, particularly African Americans. And so while homeownership has long been an important source of wealth creation for whites, that hasn't been the case for Black Americans.
    https://www.npr.org/2023/01/04/1146960942/how-buying-a-home-became-a-key-way-to-build-wealth-in-america
    See also:
    https://www.bankrate.com/mortgages/what-is-redlining/
    https://www.habitat.org/our-work/impact/research-series-how-does-homeownership-contribute-to-wealth-building
    https://projects.fivethirtyeight.com/redlining/
    You asked what have we fixed? Well, we've gotten some concessions from Fred and Donald for steering and sales discrimination, we've gone after banks (notably but not exclusively Wells Fargo) for lending practices. It doesn't fix the world, but it's a start.
    https://finurah.com/2022/04/15/nyc-wont-open-any-more-accounts-with-wells-fargo-banking-giant-has-too-many-racial-disparities-says-big-apple/
  • Thoughts on JEPI?
    Seeking Alpha has several explanations of the options strategies they use. It is pretty complicated compared to funds that use simpler covered call option strategies, like JHQAX or GATEX for example. I just started digging into JEPI and do not yet understand what factors control the yield here. Covered Calls are much easier to understand.
    JEPIX is JP Morgan's mutual fund with the same strategy as JEPI , open for a much longer time
    During the Covid Crash ( March 2020 ) JEPIX lost 25% , similar to SP500. JHQAX dropped 14% and GATEX was down only 11 to 12%, but of course neither JHQAX or GATEX yields 11%. It is unclear how long JEPI yield will continue.
    What about treasuries? Can't beat a risk free 5%!
  • Thoughts on JEPI?
    My 75 y/o parents are considering putting some cash into JEPI as they want some additional income and like the yield (11.49%). They have a growth section in their portfolio (a lot of FCNTX and DODGX both of which they've held for over 35 years) and are considering JEPI for the income side of their portfolio and are willing to sacrifice capital appreciation for the extra income. JEPI has some investments that I simply don't understand and I don't think my parents do either. What are your thoughts on JEPI?
    Thanks in advance for any and all replies!
  • Dodge and Cox Annual Reports posted
    @yogibearbull,
    Thanks - My attempt to re-create my original 4.5% number failed. Those are very big numbers to deal with. (C student in math) :) But I obviously wasn’t including call options in the short positions total.
    I think we both will recall they initiated about a 5% short position in the S&P a year or two ago and gradually lowered that. Around 2% short the S&P is the last reference I remember reading or seeing.
  • Dodge and Cox Annual Reports posted
    @hank, I am looking at NOTIONAL amounts that are the total positions controlled and gains/losses experienced are (almost) on those. For options, the option-delta also comes into play. Amounts invested or current values are smaller as these are leveraged derivatives.
    So, I see:
    $613.73 million (notional) in short futures.
    $846.23 million (notional) in call options
    Some of these positions may offset others.
    Unclear about currencies as only buys and sells are shown, not net positions.
    The fund AUM is $13.51 billion, so 1% is $135.1 million.
    If I was looking for something like this for my personal brokerage account, I would think of it as gross 10%+ exposure to futures and options. This is just an observation, not intended to cause alarm.
  • Dodge and Cox Annual Reports posted
    @yogibearbull - Thanks for insights. My best attempt at those numbers (DODBX) turns up about 4.54% of total fund assets invested in short positions, spread across stocks and bonds.
    I guess the significance of that 4.54% number lies in the eye of the beholder. It is not uncommon for bond funds to carry small tactical short positions on long dated treasuries - while remaining overall long the market. While many alternative type funds short equities, it’s probably quite uncommon for a “balanced” fund to do so. DODBX has always ISTM operated a bit ”out of the mold” anyway - albeit the S&P short position is a recent development.
    @MikeW - Good points. Virtually every participant on this week’s WSW (linked by @Crash in a separate thread) demurred in some manner to what they view as a shifting “power block” among nations and geographic regions - with China part of that. And, generally, they did not view these developments as positive for the U.S. economy, consumers or investors. I can’t help wondering if D&C is still as exuberant over China today as they were December 22, 2022 - the date of the report.
  • Blackstone Child Labor in Slaughterhouses and Low-Road Capitalism 2
    Great article in NYT today about child labor in the U.S. It’s actually pervasive:
    https://nytimes.com/2023/02/25/us/unaccompanied-migrant-child-workers-exploitation.html
    These workers are part of a new economy of exploitation: Migrant children, who have been coming into the United States without their parents in record numbers, are ending up in some of the most punishing jobs in the country, a New York Times investigation found. This shadow work force extends across industries in every state, flouting child labor laws that have been in place for nearly a century. Twelve-year-old roofers in Florida and Tennessee. Underage slaughterhouse workers in Delaware, Mississippi and North Carolina. Children sawing planks of wood on overnight shifts in South Dakota..,.
    …In town after town, children scrub dishes late at night. They run milking machines in Vermont and deliver meals in New York City. They harvest coffee and build lava rock walls around vacation homes in Hawaii. Girls as young as 13 wash hotel sheets in Virginia….
    ….Migrant child labor benefits both under-the-table operations and global corporations, The Times found. In Los Angeles, children stitch “Made in America” tags into J. Crew shirts. They bake dinner rolls sold at Walmart and Target, process milk used in Ben & Jerry’s ice cream and help debone chicken sold at Whole Foods. As recently as the fall, middle-schoolers made Fruit of the Loom socks in Alabama. In Michigan, children make auto parts used by Ford and General Motors.
    The number of unaccompanied minors entering the United States climbed to a high of 130,000 last year — three times what it was five years earlier — and this summer is expected to bring another wave….
    …One of the nation’s largest contract manufacturers, Hearthside [Food Solutions] makes and packages food for companies like Frito-Lay, General Mills and Quaker Oats. “It would be hard to find a cookie or cracker aisle in any leading grocer that does not contain multiple products from Hearthside production facilities,” a Grand Rapids-area plant manager told a trade magazine in 2019.
    General Mills, whose brands include Cheerios, Lucky Charms and Nature Valley, said it recognized “the seriousness of this situation” and was reviewing The Times’s findings. PepsiCo, which owns Frito-Lay and Quaker Oats, declined to comment.
    Three people who until last year worked at one of the biggest employment agencies in Grand Rapids, Forge Industrial Staffing, said Hearthside supervisors were sometimes made aware that they were getting young-looking workers whose identities had been flagged as false.
    “Hearthside didn’t care,” said Nubia Malacara, a former Forge employee who said she had also worked at Hearthside as a minor….
    …While many migrant children are sent to the United States by their parents, others are persuaded to come by adults who plan to profit from their labor.
    Nery Cutzal was 13 when he met his sponsor over Facebook Messenger. Once Nery arrived in Florida, he discovered that he owed more than $4,000 and had to find his own place to live. His sponsor sent him threatening text messages and kept a running list of new debts: $140 for filling out H.H.S. paperwork; $240 for clothes from Walmart; $45 for a taco dinner.
    “Don’t mess with me,” the sponsor wrote. “You don’t mean anything to me.”
    Nery began working until 3 a.m. most nights at a trendy Mexican restaurant near Palm Beach to make the payments. “He said I would be able to go to school and he would take care of me, but it was all lies,” Nery said.
    His father, Leonel Cutzal, said the family had become destitute after a series of bad harvests and had no choice but to send their oldest son north from Guatemala….
    …Teachers at the school estimated that 200 of their immigrant students were working full time while trying to keep up with their classes. The greatest share of Mr. Angstman’s students worked at one of the four Hearthside plants in the city.
    The company, which has 39 factories in the United States, has been cited by the Occupational Safety and Health Administration for 34 violations since 2019, including for unsafe conveyor belts at the plant where Carolina found her job. At least 11 workers suffered amputations in that time. In 2015, a machine caught the hairnet of an Ohio worker and ripped off part of her scalp.
    The history of accidents “shows a corporate culture that lacks urgency to keep workers safe,” an OSHA official wrote after the most recent violation for an amputation.
    Underage workers in Grand Rapids said that spicy dust from immense batches of Flamin’ Hot Cheetos made their lungs sting, and that moving heavy pallets of cereal all night made their backs ache. They worried about their hands getting caught in conveyor belts, which federal law classifies as so hazardous that no child Carolina’s age is permitted to work with them….
    …But these jobs — which are grueling and poorly paid, and thus chronically short-staffed — are exactly where many migrant children are ending up. Adolescents are twice as likely as adults to be seriously injured at work, yet recently arrived preteens and teenagers are running industrial dough mixers, driving massive earthmovers and burning their hands on hot tar as they lay down roofing shingles, The Times found.
    Unaccompanied minors have had their legs torn off in factories and their spines shattered on construction sites, but most of these injuries go uncounted. The Labor Department tracks the deaths of foreign-born child workers but no longer makes them public. Reviewing state and federal safety records and public reports, The Times found a dozen cases of young migrant workers killed since 2017, the last year the Labor Department reported any.
    The deaths include a 14-year-old food delivery worker who was hit by a car while on his bike at a Brooklyn intersection; a 16-year-old who was crushed under a 35-ton tractor-scraper outside Atlanta; and a 15-year-old who fell 50 feet from a roof in Alabama where he was laying down shingles.
    Note like the Packers company owned by Blackstone above, Hearthside is owned by a private equity fund shop, this one called Charlesbank Capital Partners.
  • Dodge and Cox Annual Reports posted
    DODBX Annual Report: Pg 13 has details on short positions. The notional amounts seem high considering the fund AUM of $13.51 billion. Related explanations/descriptions are on pg 18.
  • BONDS, HIATUS ..... March 24, 2023
    Yes, the rally from January is completely unwound by now. I bought junk early in '22 at just the WRONG time. Still -10% down in TUHYX. At some point, maybe the combination of dividends and share price might get me back to "even-steven." I don't EXPECT so. In the meantime, those buzzards can continue to pay me every month at a rate which exceeds IG and CDs, and in my next life, when rates come DOWN, then THAT next iteration of myself can enjoy a profit with it all. (Just under 15% of total portfolio.)
    Together with PRCPX and HYDB, junk is 21.45% of portfolio right now. (Although HYDB is a tiny fraction.) For a particular purpose my wife has in mind over the long haul, we are using SCHP. (TIPs.)
  • BONDS, HIATUS ..... March 24, 2023
    @larryB I found the SOFR numerical and graphic chart HERE. Scroll down a tiny to view. You'll see the numerical column and then a line graph, both with a date range. There are other settings below, but I've not fiddled with those. You'll note that the 4.55 has been in place for awhile and seems to be reflected in MMKT rates. I envision the folks traveling these money paths would be, not unlike some of us here playing SOFR poker; bidding against one another as to how much we're willing to pay in interest for an overnight loan of cash. :) There may be days when no game is played with changes. Save the chart link, if you want to peek going forward.
    SOFR may relate to those who are buying CD's at brokerage, and what numbers for yield they see, too.
    @johnN So many choices for bond exposure. I don't buy singular bonds, but much of the 'world' does for pension funds and related. They'll have their yield locked in, if that is what they want; but for the funds, we're subject to the changing prices. A tricky place to play, many times; if one is not willing to be patient with time, OR is an immaculate trader.
  • Smaller SP-SC 600 ETF SLY Merging into Larger SPSM
    What is the story here?
    State Street was a pioneer and first mover in the ETFs (SPY was the 1st ever ETF in 01/1993).
    For many years, the SEC had approved the ETFs as exceptions to mutual funds, and over time, these exceptions created ETFs with slightly different twists. Firms hung on to these older versions of ETFs because the newer rules were quite different. Some older ETFs also had decent past history and good liquidity due to better intuitional acceptance even when some had high ERs.
    So, many firms developed entirely new "core" versions of their older ETFs that had lower ERs, but the AUMs started out low, and liquidity was not good for institutions, but OK for retail. This is ETF industry version of having its cake and eating it too.
    That is how the "SPDR Portfolio" ETFs came about in 10/2017. These were just what the others have called their "core" ETFs (BlackRock's iShares come to mind and there are several others).
    More recently, there were reforms for the ETFs in 09/2019 and all these older ETF structures based on ETFs-as-exceptions-to-mutual-funds were dumped, and new ETF structures were developed and applied uniformly to almost all ETFs.
    Now to SLY vs SPSM.
    SPDR SLY started in 11/2005. Its current AUM is $1.8 billion and ER is 0.15%. Its benchmark was always SP SC 600.
    SPDR Portfolio SPSM started out in 07/2013 with a different SC index, that was changed to another SC index, and finally changed to SP SC 600 in 2020. Its current AUM is $5.2 billion (much bigger than the original SLY) and ER is 0.05% (much lower than the original SLY).
    So, now, after the changes to SPSM in 2020, the 2 became identical! Why not merge them?
    And that is what State Street is doing now with 06/2023 target. If anything, what took them so long?
  • BONDS, HIATUS ..... March 24, 2023
    Hi @larryB
    I was going to write about this next week, but here we are and that's great; as it relates to your and my own question, too.
    SOFR is a broad measure of the cost of borrowing cash overnight, collateralized by
    U.S. Treasury securities in the repurchase agreement (repo) market.
    There is monetary hand-holding in REPO and SOFR land. LIBOR had this function, but has been replaced with SOFR. LIBOR (London) had a few proven manipulations taking place and was given the boot for this monetary trading arena. Trillions of dollars travel these hidden electronic roads as we eat, sleep, play and other. I don't know about all of the areas using SOFR rates (lack of study time), but some large mortgage companies use the SOFR yield rate to set mortgage rates.
    SOFR New York Fed. Reserve related write up.
    This links to Part II, for the overview. I wouldn't begin to launch this in my own words. I think you'll find some quick decent reading without going crazy.
    SOFR A decent Investopedia definition
    My quick and dirty for SOFR and MMKT rates is that, as FED rates increased....then SOFR rates increased and with watching SOFR rates there is a very close connection in the yields being paid in MMKT's.
    SOFR is reported through the day on Bloomberg tv, and has remained at 4.55 during the same time frame as with the 'flat line' in MMKT yields, generally speaking. for the ones I view. There is a % range for this and I can't find my handy-dandy chart. I'll dig around and place it in this thread; as it can't be more than a few electrons away.
    Hi @Anna Thanks for the kind words. I learn from writing, too.
  • SPDR Bloomberg SASB Corporate Bond ESG Select ETF to liquidate
    https://www.sec.gov/Archives/edgar/data/1064642/000119312523048776/d287555d497.htm
    97 1 d287555d497.htm SPDR SERIES TRUST
    SPDR® SERIES TRUST
    (the “Trust”)
    SPDR Bloomberg SASB Corporate Bond ESG Select ETF
    (the “Fund”)
    Supplement dated February 24, 2023
    to the Summary Prospectus, Prospectus and Statement of Additional Information
    each dated October 31, 2022, as may be supplemented from time to time
    On February 23, 2023, at the recommendation of SSGA Funds Management, Inc., the Trust’s investment adviser, the Trust’s Board of Trustees voted to close and liquidate the Fund.
    The Fund will create and redeem creation units through April 11, 2023, which will also be the last day of trading of the Fund’s shares on the NYSE Arca, Inc., the Fund’s principal U.S. listing exchange. The Fund will cease operations, liquidate its assets, and prepare to distribute proceeds to shareholders of record on or about April 17, 2023 (the “Liquidation Date”). Shareholders of record of the Fund remaining on the Liquidation Date will receive cash at the net asset value of their shares as of such date, which will include any net capital gains and net investment income as of this date that had not been previously distributed. Any net capital gains and net investment income from the previous fiscal year, which were not distributed by the end of the most recent fiscal year-end, may be distributed to shareholders in advance of the Liquidation Date, in what is commonly referred to as a “spillback distribution.”
    Prior to the Liquidation Date, the Fund will be in the process of closing down and liquidating its portfolio, which will result in the Fund not tracking its Index and increasing its holdings in cash and/or cash equivalents, which may not be consistent with the Fund’s investment objective and strategy. Shareholders of the Fund may sell their holdings on the NYSE Arca, Inc. prior to April 12, 2023. Customary brokerage charges may apply to such transactions. From April 12, 2023 through the Liquidation Date, we cannot assure you that there will be a market for your shares.
    On or about April 18, 2023, the Fund will distribute to its remaining shareholders a liquidating cash distribution equal to the current net asset value of their shares. While Fund shareholders remaining on the Liquidation Date will not incur transaction fees, shareholders generally will recognize a capital gain or loss on the redemptions. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation.
    Shareholders can call 1-866-787-2257 for additional information.
    PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
    022423SUPP2
  • Invesco liquidates some more ETFs
    https://www.sec.gov/Archives/edgar/data/1378872/000119312523048862/d471458d497.htm
    497 1 d471458d497.htm 497
    INVESCO EXCHANGE-TRADED FUND TRUST II
    SUPPLEMENT DATED FEBRUARY 24, 2023 TO THE:
    PROSPECTUSES AND STATEMENT OF ADDITIONAL INFORMATION
    DATED FEBRUARY 25, 2022, AS PREVIOUSLY SUPPLEMENTED, OF:
    Invesco PureBetaSM FTSE Emerging Markets ETF (PBEE)
    Invesco PureBetaSM FTSE Developed ex-North America ETF (PBDM)
    and
    PROSPECTUSES AND STATEMENT OF ADDITIONAL INFORMATION
    DATED DECEMBER 16, 2022, AS PREVIOUSLY SUPPLEMENTED, OF:
    Invesco PureBetaSM MSCI USA Small Cap ETF (PBSM)
    Invesco PureBetaSM US Aggregate Bond ETF (PBND)
    (PBEE, PBDM, PBSM and PBND are
    each, a “Fund” and collectively, the “Funds”)
    As previously announced, at a meeting held on January 20, 2023, the Board of Trustees of the Invesco Exchange-Traded Fund Trust II (the “Board”) approved the termination and liquidation of each Fund. The liquidation payment to shareholders is now expected to take place on or about June 30, 2023.
    On February 24, 2023, the Board approved a revised timeline for the termination and liquidation of the Funds. Accordingly, the Funds no longer will accept creation orders after the close of business on June 16, 2023. The last day of trading in each Fund on the Cboe BZX Exchange, Inc. (the “Exchange”) will be June 23, 2023. Shareholders should be aware that while the Funds are preparing to liquidate, they will not be pursuing their stated investment objective or engaging in any business activities except for the purposes of winding up their business and affairs, preserving the value of their assets, paying their liabilities, and distributing their remaining assets to shareholders. A liquidation may also be delayed if unforeseen circumstances arise.
    Shareholders may sell their holdings of a Fund on the Exchange until market close on June 23, 2023, and may incur typical transaction fees from their broker-dealer. Each Fund’s shares will no longer trade on the Exchange after market close on June 23, 2023, and the shares will be subsequently delisted. Shareholders who do not sell their shares of a Fund before market close on June 23, 2023 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, in the cash portion of their brokerage accounts, on or about June 30, 2023.
    Shareholders generally will recognize a capital gain or loss equal to the amount received for their shares over or under their adjusted basis in such shares.
    Shareholders should call the Funds’ distributor, Invesco Distributors, Inc., at 1-800-983-0903 for additional information.
    Please Retain This Supplement For Future Reference.
    P-PS-TRUSTII2-PROSAI-SUP 022423
    ================================================================
    https://www.sec.gov/Archives/edgar/data/1418144/000119312523048856/0001193125-23-048856-index.htm
    497 1 d292792d497.htm 497
    INVESCO ACTIVELY MANAGED EXCHANGE-TRADED FUND TRUST
    SUPPLEMENT DATED FEBRUARY 24, 2023 TO THE:
    PROSPECTUSES AND STATEMENT OF ADDITIONAL INFORMATION
    DATED FEBRUARY 25, 2022, AS PREVIOUSLY SUPPLEMENTED, OF:
    Invesco Balanced Multi-Asset Allocation ETF (PSMB)
    Invesco Conservative Multi-Asset Allocation ETF (PSMC)
    Invesco Growth Multi-Asset Allocation ETF (PSMG)
    Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)
    (each, a “Fund” and collectively, the “Funds”)
    As previously announced, at a meeting held on January 20, 2023, the Board of Trustees of the Invesco Actively Managed Exchange-Traded Fund Trust (the “Board”) approved the termination and liquidation of each Fund. The liquidation payment to shareholders is now expected to take place on or about June 30, 2023.
    On February 24, 2023, the Board approved a revised timeline for the termination and liquidation of the Funds. Accordingly, the Funds no longer will accept creation orders after the close of business on June 16, 2023. The last day of trading in each Fund on the Cboe BZX Exchange, Inc. (the “Exchange”) will be June 23, 2023. Shareholders should be aware that while the Funds are preparing to liquidate, they will not be pursuing their stated investment objective or engaging in any business activities except for the purposes of winding up their business and affairs, preserving the value of their assets, paying their liabilities, and distributing their remaining assets to shareholders. A liquidation may also be delayed if unforeseen circumstances arise.
    Shareholders may sell their holdings of a Fund on the Exchange until market close on June 23, 2023, and may incur typical transaction fees from their broker-dealer. Each Fund’s shares will no longer trade on the Exchange after market close on June 23, 2023, and the shares will be subsequently delisted. Shareholders who do not sell their shares of a Fund before market close on June 23, 2023 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, in the cash portion of their brokerage accounts, on or about June 30, 2023.
    Shareholders generally will recognize a capital gain or loss equal to the amount received for their shares over or under their adjusted basis in such shares.
    Shareholders should call the Funds’ distributor, Invesco Distributors, Inc., at 1-800-983-0903 for additional information.
    Please Retain This Supplement For Future Reference.
    P-PSM5-PROSAI-SUP 022423
  • SPDR Bloomberg SASB Emerging Markets ESG Select ETF to liquidate
    https://www.sec.gov/Archives/edgar/data/1168164/000119312523048828/d404592d497.htm
    497 1 d404592d497.htm SPDR INDEX SHARES FUNDS
    SPDR® INDEX SHARES FUNDS
    (the “Trust”)
    SPDR Bloomberg SASB Emerging Markets ESG Select ETF
    (the “Fund”)
    Supplement dated February 24, 2023
    to the Summary Prospectus, Prospectus and Statement of Additional Information
    each dated January 31, 2023, as may be supplemented from time to time
    On February 23, 2023, at the recommendation of SSGA Funds Management, Inc., the Trust’s investment adviser, the Trust’s Board of Trustees voted to close and liquidate the Fund.
    The Fund will create and redeem creation units through April 11, 2023, which will also be the last day of trading of the Fund’s shares on the NYSE Arca, Inc., the Fund’s principal U.S. listing exchange. The Fund will cease operations, liquidate its assets, and prepare to distribute proceeds to shareholders of record on or about April 17, 2023 (the “Liquidation Date”). Shareholders of record of the Fund remaining on the Liquidation Date will receive cash at the net asset value of their shares as of such date, which will include any net capital gains and net investment income as of this date that had not been previously distributed. Any net capital gains and net investment income from the previous fiscal year, which were not distributed by the end of the most recent fiscal year-end, may be distributed to shareholders in advance of the Liquidation Date, in what is commonly referred to as a “spillback distribution.”
    Prior to the Liquidation Date, the Fund will be in the process of closing down and liquidating its portfolio, which will result in the Fund not tracking its Index and increasing its holdings in cash and/or cash equivalents, which may not be consistent with the Fund’s investment objective and strategy. Shareholders of the Fund may sell their holdings on the NYSE Arca, Inc. prior to April 12, 2023. Customary brokerage charges may apply to such transactions. From April 12, 2023 through the Liquidation Date, we cannot assure you that there will be a market for your shares.
    On or about April 18, 2023, the Fund will distribute to its remaining shareholders a liquidating cash distribution equal to the current net asset value of their shares. While Fund shareholders remaining on the Liquidation Date will not incur transaction fees, shareholders generally will recognize a capital gain or loss on the redemptions. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation.
    Shareholders can call 1-866-787-2257 for additional information.
    PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
    022423SUPP3