Behind State Street's New Investable Indices Launch

The worlds of academic theory and financial markets are another step closer together following the launch of State Street Corporation’s new investable indices for institutional investors.

State Street announced Tuesday it has developed and begun licensing a suite of rules-based investment strategies.

The launch comes from State Street’s data and analytics division – not SSGA’s asset management division.

Will Kinlaw, head of research and advisory for State Street Global ExchangeSM, said the indices are not smart beta or thematic investing, rather these are investable indices that represent a new phase of dynamic investing.

“We’re packaging an active strategy in rules-driven index, where security weights can change dynamically as relevant factors and big data indicators evolve,” he said.

Kinlaw told ETF Trends that the new investable indices evolved from client demand from many interested in getting signals packaged as an index.