State Street Global Advisors is claiming a stake in the exchange traded fund (ETF) world. About two years ago, executives in the ETF group went to the head of the company and suggested they invest more in the ETF business. They recommended this not only for the huge potential profits, but also to claim their title as the leader in ETFs against their biggest competitor, Barclays Global Advisors. In 1993, State Street introduced the first ETF based upon the S&P 500 stock index, known as the "Spider" or SPDR (SPY). Turns out, it was a huge success, and the SPDR continues to be the biggest single ETF in the U.S., touting $62 billion, reports Tom Lauricella for The Wall Street Journal.
As of late, State Street is back in the game, adding more than two dozen funds during the past two years. They are taking their ETFs from a niche area and making them the main attraction. There is no doubt this will be an uphill battle, but it is definitely worth working toward.
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