BOSTON--()--State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today released a new report titled, 2012 ETF & Investment Outlook: Sinking or Swimming?, which focuses on developments shaping market performance and the Exchange Traded Fund (ETF) industry during the first half of 2012 and provides an updated investment outlook for the remainder of the year.
“If flows continue at this pace, 2012 will mark the sixth consecutive year that ETFs attract more than $100 billion in positive cash flows, which is remarkable given the trajectory of the markets during this period of time.”
Developed by the SPDR ETF Strategy & Consulting Group, the report reveals that US ETFs attracted more than $60 billion of inflows over the first five months of 2012, as 100 new funds were launched by 17 different providers, including one new entrant to the market. Amid signs the low interest rate environment will continue for the foreseeable future, demand for dividend/fundamental ETFs – the most popular category in 2011 – remained on top, as investors added $8.9 billion of inflows to these funds in the first five months of the year. Investors also increased their exposure to credit/corporate, government credit and high yield bond ETFs.
“With concerns over job growth in the US top of mind coupled with Europe’s debt problems, investors continue to put their savings to work in ETFs that provide alternative sources of yield,” said Kevin Quigg, global head of ETF Strategy & Consulting at State Street Global Advisors. “If flows continue at this pace, 2012 will mark the sixth consecutive year that ETFs attract more than $100 billion in positive cash flows, which is remarkable given the trajectory of the markets during this period of time.”
In addition to providing an overview of the growth of active ETFs and updating the three potential market scenarios featured in the 2012 ETF & Investment Outlook published in January 2012, the report revisits the two core investment themes expected to prevail all year – generating income and growth –encouraging investors to avoid the pitfalls of chasing yield and be mindful of undervalued, overlooked segments of emerging markets
To download a copy of 2012 ETF & Investment Outlook: Sinking or Swimming?, 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 new website launched by State Street to provide individual investors with a comprehensive, trusted resource for ETF education.
State Street manages more than $307** billion in SPDR ETF assets worldwide (as of March 31, 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. $68 billion as of March 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors serves as the marketing agent.
All data provided by the SPDR ETF Strategy & Consulting Group unless otherwise noted.
IMPORTANT RISK INFORMATION
ETFs trade like stocks, 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.
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. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR S&P 500, SPDR S&P MidCap 400 and SPDR Dow Jones Industrial Average, all unit investment trusts, and Select Sector SPDRs. ALPS Distributors, Inc. is not affiliated with State Street Global Markets, LLC.
SPDRis a registered trademark of Standard & Poor Financial Services LLC (&P and has been licensed for use by State Street Corporation. STANDARD & POOR, S&P and S&P 500 are registered trademarks of Standard & Poor Financial Services LLC. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products.
Before investing, consider the funds investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it carefully.