State Street teams with MFS to open its first active stock ETFs

Jan 8, 2014 @ 5:28 pm

+ Zoom

State Street Corp., the second-biggest provider of exchange-traded funds, plans to introduce its first actively managed stock ETFs in partnership with MFS Investment Management.

The three funds, the SPDR MFS Systematic Core Equity ETF, Growth Equity ETF and Value Equity ETF, will open Thursday on the New York Stock Exchange, according to a statement yesterday from NYSE Euronext.

Fund companies for years have contemplated ways to combine the security selection of active mutual funds with the ease of trading and cost savings of ETFs, most of which track indexes. The transparency of ETFs, which are required to reveal all their holdings daily, has discouraged many would-be providers and equity investors.

Actively managed funds account for about $14.7 billion, or 0.9% of U.S. ETF assets, according to data compiled by Bloomberg.

State Street offers 197 ETFs holding $413 billion in assets, second only to BlackRock Inc.'s $898 billion, according to the data. MFS, manager of the first open-end mutual fund in the U.S., oversaw $413 billion in assets as of Dec. 31, according to Daniel Flaherty, a spokesman. MFS is a unit of Sun Life Financial Inc.

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Latest news & opinion

The appeal and pitfalls of holding unconventional assets in retirement accounts

While non-traditional asset classes held in individual retirement accounts may have return and portfolio diversification benefits, there are "unique complexities" that limit their value for most investors.

Wells Fargo's move to boost signing bonuses could give it a lift

Wirehouse is seen as trying to shore up adviser ranks that took a hit after banking scandal

Report predicts $400 trillion retirement savings gap by 2050

Shortfall driven by longer life spans and disappointing investment returns.

Wells Fargo will ramp up spending to lure brokers

Wirehouse, after losing 400 brokers in first quarter, is bucking trend among rivals who have said they are going to cut back on spending big bucks recruiting veteran advisers

DOL fiduciary rule pushes indexed annuity carriers to develop new products

Insurers are introducing fixed-rate deferred annuities with income guarantees to circumvent BICE.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print