State Street Report Uncovers Mid-Year ETF Industry Trends
August 11 2008 - 10:24AM
Business Wire
State Street Global Advisors (SSgA), the investment management arm
of State Street Corporation (NYSE: STT), today announced the
release of a new report detailing several key themes that have
emerged in the U.S. exchange traded funds industry during the first
half of the year. Titled 2008 Mid-Year Exchange Traded Fund Report,
the research is designed to reveal new insights into how the
exchange traded fund market is evolving amid recent stock market
volatility. According to the report, which is authored by Tom
Anderson, head of strategy and research for State Street�s
Intermediary Business Group, US ETF assets totaled approximately
$575 billion at the midway point of 2008 � down 5.4 percent from
the start of the year. This drop in assets is attributed to
declining equity valuations, as the number of ETF shares
outstanding increased 9 percent during the same period of time,
indicating that investors have continued to add shares of ETFs to
their portfolios as the markets declined. �Despite a sharp decline
for US equities in the first half of 2008, investors continued to
increase their appetite for ETFs, which is a testament to the
increasingly vital role ETFs play in a growing number of portfolios
and strategies,� says Anderson. �Many of the trends highlighted in
the 2008 Mid-Year Exchange Traded Fund Report, including the strong
growth of sector, fixed income, inverse, and commodity ETFs,
illustrate how ETFs are helping to level the playing field by
improving access to segments of the market that were once beyond
the reach of most investors.� Other key findings from the 2008
Mid-Year Exchange Traded Fund Report include: The pace at which new
ETFs are entering the market has slowed - 87 new ETFs were launched
in the first half of 2008, compared to 167 during the same period
in 2007; Despite their much anticipated arrival, active ETFs are on
average trading just over 2,000 shares daily; and With energy and
food costs rising, investors are increasingly protecting their
assets from inflation. In the first half of 2008, assets in
Treasury Inflation Protected Securities (TIPS) ETFs and commodity
ETFs have increased 39 percent and 34 percent respectively. For
more information on these trends and others emerging in the ETF
industry, financial professionals can download a free copy of the
2008 Mid-Year Exchange Traded Fund Report at SPDR University
(www.spdru.com), a new web site offering proprietary research and
educational materials on exchange traded products (ETPs), the
markets, portfolio strategies, and practice management for
investment professionals. About State Street Global Advisors State
Street Global Advisors, the investment management arm of State
Street Corporation, delivers investment strategies and integrated
solutions to clients worldwide across every asset class, investment
approach and style. With $1.9�trillion in assets under management
as of June 30, 2008, State Street Global Advisors has investment
centers in Boston, Hong Kong, London, Toronto, Montreal, Munich,
Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 27
cities worldwide. For more information, visit State Street Global
Advisors at www.ssga.com. Note to Editors: SPDR� Exchange Traded
Funds SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. Offered by State Street
Global Advisors, SPDR ETFs provide professional investors with the
flexibility to select investments that are precisely aligned to
their investment strategy. Recognized as the industry pioneer,
State Street�in partnership with the American Stock
Exchange�created the first ETF in 1993 (SPDR S&P 500 � Ticker
SPY). Since then, we�ve sustained our place as an industry
innovator through the introduction of many ground-breaking
products, including first-to-market successes with gold,
international real estate, international fixed income and sector
ETFs. SPDR ETFs are managed by SSgA Funds Management, Inc, a
registered investment adviser and wholly owned subsidiary of State
Street Bank and Trust Company. ETFs trade like stocks, are subject
to investment risk and will fluctuate in market value. The �SPDR�
trademark is used under license from The McGraw-Hill Companies,
Inc. (�McGraw-Hill�). No financial product offered by State Street
Corporation or its affiliates is sponsored, endorsed, sold or
promoted by McGraw-Hill. S&P� is a trademark of The McGraw-Hill
Companies, Inc. and has been licensed for use by State Street Bank
and Trust Company. Before investing, consider the funds� investment
objectives, risks, charges and expenses. To obtain a prospectus
which contains this and other information, call 1-866-787-2257 or
visit www.spdretfs.com. Read it carefully. Distributor: State
Street Global Markets, LLC, member FINRA, SIPC, a wholly owned
subsidiary of State Street Corporation. References to State Street
may include State Street Corporation and its affiliates. ALPS
Distributors, Inc., a registered broker-dealer, is distributor for
SPDR shares, MidCap SPDRs and Dow Diamonds, all unit investment
trusts and Select Sector SPDRs. 10941-0809
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