The Contributing Drivers of ETF Growth

Exchange traded funds have hit the financial industry by storm as trillions of dollars in global wealth have found their way into the convenient investment vehicle.

For instance, as of January 31, 2017, State Street (NYSE: SST) was managing more than $2 trillion in global ETF assets and servicing 55% of the global industry’s ETFs and exchange traded products under management, reports Chuck Epstein for Chief Investment Officer.

Due to its efforts, State Street was also named the best custody service provider at this year’s Fund Action ETF innovation Awards.

Frank Koudelka, senior vice president at State Street, argued that more investors are turning their business to State Street “because of our commitment to the exchange-traded product structure, our ongoing investment in our proprietary, core platform, and our scale.”

Contributing to the recent spate of demand for ETF products, broad beta ETFs “still encompass the lion’s share of the market,” Koudelka said.

“We have seen acceleration in the launches of smart and strategic beta and actively-managed ETFs,” Koudelka said. “The smart and strategic beta ETFs have been primarily across the equity asset class and actively-managed across fixed income.”