Known to many for supporting ETF institutional investors that favor liquidity, State Street Investment Management has increasingly grown its ETF business by focusing on advisors and retail investors. With the launch today of a new low-cost ultra-short bond ETF, the firm has further supported that community.
Already a Leader in the Fixed Income ETF Market
The State Street SPDR Portfolio Ultra-Short T-Bill ETF (SPTU) began trading today. SPTU provides exposure to U.S. Treasury bills that have a remaining maturity greater than or equal to one month and less than 12 months. State Street has been a leader in the short-term fixed income ETF space for years. The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) launched in 2007 and manages $42 billion. BIL has added more than $5 billion of net inflows in 2025.
Priced at just five basis points, SPTU is one of the lowest-cost ETFs in the Treasury bond fund category. Its fee is cheaper than BIL’s 0.14%.
“Whether it’s in response to changes in Federal Reserve policy, inflation expectations, economic forecasts, or liquidity needs, ETFs allow investors to fine-tune their fixed income allocations,” said Anna Paglia, chief business officer for State Street Investment Management. “The launch of SPTU provides clients with a low-cost, ultra-short term Treasury option designed to help them meet their income generation and risk mitigation goals and may serve as a flexible and efficient funding solution for some institutional investors, including as a potential collateral tool for certain derivatives market participants.”
Appeal of Low Cost ETFs
The State Street SPDR Portfolio ETF suite has been around since 2017. The suite provides exposure to U.S. equity, international equity, and fixed income asset classes. According to State Street Investment Management, the ETFs are designed to help investors build a diversified core portfolio of stocks and bonds while keeping more of what they earn. The State Street SPDR Portfolio ETFs have amassed more than $323 billion in assets. In 2025, the SPDR Portfolio S&P 500 (SPLG) added $24 billion of new money. The SPDR Portfolio Developed World ex-US ETF (SPDW) and the SPDR Portfolio High Yield Bond ETF (SPHY) are others that have been popular this year.
In contrast, the SPDR S&P 500 ETF (SPY) incurred $29 billion of net outflows this year. The ETF, which has a 0.09% expense ratio, is widely used by institutional investors for its liquidity.
Fixed income ETFs have gathered more than $300 billion of new money in 2025 as investors have turned to ETFs to gain access to the bond market. It is exciting that State Street Investment Management is using the scale to provide another access point.
For more news, information, and strategy, visit the ETF Strategist Content Hub.
