State Street Global Advisors, the asset management business of State Street Corporation (NYSE:STT), today announced an extension of its Aristocrats range with the launch of two new ETFs: the SPDR S&P 500 Quality Aristocrats UCITS ETF and the SPDR S&P Developed Quality Aristocrats UCITS ETF, offering investors exposure to companies not only exhibiting higher quality characteristics relative to the overall companies in their parent index but also having proven track record of long-term positive free cash flow (FCF) generation.

Corresponding to the S&P 500 Quality FCF Aristocrats and S&P Developed Quality FCF Aristocrats indices, the ETFs will track companies that exhibit higher quality characteristics with at least 10 consecutive years of positive FCF, a high FCF margin and FCF return on invested capital. This focus on quality companies has historically enabled the indices to outperform their parent indices: the S&P 500 and S&P Developed LargeMidCap, respectively.

Matteo Andreetto, SSGA’s Head of Intermediary Clients coverage Europe commented:

“High cash flow enables companies to make sustained strategic investments and acquisitions and to return capital via dividends, buybacks, and/or debt reduction. These two new ETFs present a compelling opportunity for investors seeking enhanced risk-adjusted returns relative to traditional indices, particularly in today’s market where volatility is driven by geopolitical and economic uncertainty, and we’re excited to be bringing these new ETFs to the market.”

Rupert Watts, Head of Factors and Dividends at S&P Dow Jones Indices, added:

“We are pleased that State Street Global Advisors has selected our S&P Quality FCF Aristocrats Indices as the underlying benchmarks for its new exchange-traded funds. By focusing on companies that excel in long-term FCF generation, these indices are designed to primarily track high-quality firms and distinguish themselves from other FCF-based indices in the market, which are generally yield-focused and exhibit a strong value tilt.”

The funds are available to investors in Austria, Demark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and United Kingdom.