State Street has filed to launch actively managed exchange traded funds (ETFs), another sign of interest in this sector of the market. The Boston-based provider has filed to register six ETFs that are actively managed.
Oliver Ludwig for Index Universe reports that the funds cover a range of assets in different classes, and also span the globe to cover international equities as well as domestic.
Over 99% of the more than $1 trillion in assets in ETFs is in index funds, and active equity funds have, by and large, hit the market with a thud. State Street entering this area of the market is pivotal, as the firm sponsors of two of the largest ETFs trading, SPDR S&P 500 ETF (NYSEArca: SPY) and SPDR Gold Shares (NYSEArca: GLD). The move also puts the provider in competition with iShares, the largest ETF provider. [ETFs Gaining Traction With Active Managers.]
State Street managed about $2 trillion in assets overall at the end of 2010.