State Street Global Advisors Issues 2013 ETF & Investment Outlook
BOSTON -- December 18, 2012
State Street Global Advisors (SSgA)*, the asset management business of State
Street Corporation (NYSE: STT), today released a new report titled, 2013 ETF &
Investment Outlook: Finding Opportunities in an Age of Uncertainty. Developed
by the SPDR^® ETF Strategy & Consulting Group, the report details the trends
and developments expected to shape investment opportunities and the Exchange
Traded Fund (ETF) industry in 2013.
According to the report, the global Exchange Traded Product (ETP) industry
attracted nearly $200 billion of positive flows during the first eleven months
of 2012 – propelling global ETP assets under management to $1.8 trillion. The
asset classes favored by ETF investors during this period of time include US
Fixed Income ($32.2 billion in ETF inflows), Emerging Markets Equity ($20.2
billion), and US Equity Large Cap Blend ($16.6 billion). Investors also
significantly increased their exposure to Commodities/Precious Metals ETPs
($13.8 billion of inflows) and High Yield Fixed Income ETFs ($12.6 billion).
“ETF industry assets and net new flows increased at a robust pace in 2012, as
a growing universe of investors embraced their transparency, precision, and
ease-of-use,” said Kevin Quigg, global head of ETF Strategy & Consulting at
State Street Global Advisors. “Despite lingering economic uncertainty, ETF
asset flows should continue to increase in 2013, due to better ETF education
and awareness and a growing willingness among investors to embrace new asset
classes to generate income and growth in their portfolios.”
In addition to providing a 2013 investment outlook that features base, bull,
and bear case scenarios, the 2013 ETF & Investment Outlook report identifies
the following two investment themes that are expected to drive ETF asset flows
and product development in the year ahead:
Going global for income and total return – As interest rates remain low and
the search for yield evolves, investors will increasingly view the income
allocation in their portfolio from a global and total return perspective to
enhance returns and avoid the pitfalls of chasing yield.
The return of growth: reflating with equities and real assets – Having shunned
equities for the perceived safety of fixed income in recent years, investors
with long-term horizons will revisit the role of equities and other assets
that offer the best ability to provide positive real returns during the
continued road to economic recovery.
“On the eve of the ETF industry’s 20^th anniversary, product development is
poised to shift toward solutions oriented funds,” said David Mazza, head of
ETF investment strategy at State Street Global Advisors. “Fueled in part by
prevailing economic uncertainty and increasing competition across the global
ETF landscape, investors can expect to see more unique fixed income and active
ETFs come to market during this new chapter in product development.”
To download a copy of 2013 ETF & Investment Outlook: Finding Opportunities in
an Age of Uncertainty, please visit SPDR University (www.spdru.com), State
Street’s award winning online educational resource for investment
professionals or ETF Fact or Fiction (www.etffactorfiction.com), a
comprehensive, trusted ETF education resource for individual investors.
State Street manages more than $337** billion in SPDR ETF assets worldwide (as
of September 30, 2012) and is one of the largest ETF providers globally.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and
domestic asset classes. SPDR ETFs are managed by SSgA Funds Management, Inc.,
a registered investment adviser and wholly owned subsidiary of State Street
Bank and Trust Company. The funds provide professional investors with the
flexibility to select investments that are precisely aligned to their
investment strategy. Recognized as the industry pioneer, State Street created
the first ETF in 1993 (SPDR S&P 500^® – Ticker SPY). Since then, we’ve
sustained our place as an industry innovator through the introduction of many
ground-breaking products, including first-to-market launches with gold,
international real estate, international fixed income and sector ETFs. For
more information, visit www.spdrs.com.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset management.
The firm is relied on by sophisticated investors worldwide for its disciplined
investment process, powerful global investment platform and access to every
major asset class, capitalization range and style. SSgA is the asset
management business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment
adviser and wholly owned subsidiary of State Street Bank & Trust Company.
**This AUM includes the assets of the SPDR Gold Trust (approx. $75 billion as
of September 30, 2012), for which State Street Global Markets, LLC, an
affiliate of State Street Global Advisors serves as the marketing agent.
Important Risk Information:
ETFs trade like stocks, are subject to investment risk, fluctuate in market
value and may trade at prices above or below the ETFs net asset value.
Brokerage commissions and ETF expenses will reduce returns.
“SPDR” is a registered trademark of Standard & Poor’s Financial Services, LLC
(“S&P”) and has been licensed for use by State Street Corporation. No
financial product offered by State Street or its affiliates is sponsored,
endorsed, sold or promoted by S&P.
Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly
owned subsidiary of State Street Corporation. References to State Street may
include State Street Corporation and its affiliates. Certain State Street
affiliates provide services and receive fees from the SPDR ETFs.
Before investing, consider the funds’ investment objectives, risks, charges
and expenses. To obtain a prospectus or summary prospectus which contains this
and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it
State Street Corporation
Anne McNally, 617-664-8576
Troy Mayclim, 914-686-5599
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