Latest news with #StateStreetGlobalAdvisors'
Irish Examiner
5 days ago
- Business
- Irish Examiner
Workers increasingly optimistic on retirement plans
One in three workers now describe themselves as optimistic about retirement and believe they will retire on schedule, according to a new report. The State Street Global Advisors' 2025 Global Retirement Reality Report shows both of those optimistic responses as rising from around one in five in 2023. This is exclusive subscriber content. Already a subscriber? Sign in Subscribe to access all of the Irish Examiner. Annual €120€60 Best value Monthly €10€4 / month Unlimited access. Subscriber content. Daily ePaper. Additional benefits.
Yahoo
14-05-2025
- Business
- Yahoo
Active ETFs Surge in $2T ETF Market Boom: State Street
The global ETF market is on track to achieve a historic milestone with flows projected to reach $2 trillion by the end of 2025, according to State Street Global Advisors' latest ETF Impact Report. This remarkable growth comes as innovation in active management and new asset categories transforms how investors build portfolios. Active ETF strategies are rapidly moving from the periphery to the mainstream of investment portfolios, capturing 32% of all ETF flows as investors seek more dynamic approaches to navigate market uncertainty, according to the State Street report. This shift toward active management is pronounced in fixed income, where investors are looking beyond traditional high-yield options to areas like bank loans and collateralized loan obligations. "The gap between adoption and opportunity suggests that ETFs are still in the early innings of their evolution and their role in portfolio construction is poised to grow even more in the years ahead," wrote Anna Paglia, executive vice president and chief business officer at State Street Global Advisors, in the report. Active ETFs have seen extraordinary momentum, with global active fixed-income ETF assets reaching $350 billion as of December 2024. State Street projects this figure will double to $700 billion by year-end 2026 as investors seek real-time adjustments to changing market conditions. "As global central banks pivot from rate hikes to rate cuts, investors are re-evaluating bond positioning and leaning on active ETFs for real-time adjustments," wrote Michael Arone, chief investment strategist at State Street Global Advisors, who co-authored the report with Matthew Bartolini, head of SPDR Americas research. This trend spans global markets, with active fixed-income ETFs growing 33% in the Asia-Pacific region last year and European inflows reaching $2 billion in 2024. The search for yield has catalyzed growth in specialized fixed-income categories. High-yield bond ETFs hold $118 billion in assets, while CLO ETFs have rapidly expanded to $54 billion. By 2026, these securitized credit products are expected to collectively surpass traditional high-yield bond ETFs in total assets. Digital assets and thematic investments represent another major growth area. Global crypto ETF assets surged 255% year over year to reach $127.7 billion in 2024 following regulatory advancements. Meanwhile, AI-themed ETFs are driving record flows for thematic investments, with $2.4 billion collected in just the first two months of 2025. Nearly half of these flows ($1.1 billion) came specifically from robotics and AI-focused ETFs. The report also highlights a notable generational divide in adoption patterns. Younger investors are embracing newer ETF categories at much higher rates, with 69% of millennials investing in non-traditional assets compared to 46% of baby boomers. According to State Street, eight in 10 advisors now report that these evolving ETF categories play a valuable role in long-term planning and retirement strategies, signaling a fundamental shift in how professionals approach portfolio construction for | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
State Street Report Shows Big Slump in April ETF Inflows
A slowdown in ETF adoption threatens State Street Global Advisors' (STT) full-year forecast of $1.3 trillion of inflows, according to the firm's latest "US-Listed ETF Flash Flows" report. Exchange-traded funds recorded $62 billion of inflows in April, marking the lowest monthly total in a year as investors retreated from riskier assets amid mounting volatility from escalating trade tensions. Despite global equities posting gains in April, U.S. stocks suffered losses as trade war volatility had a concentrated impact on domestic markets, reshaping investor sentiment and positioning across multiple asset classes. Gold ETFs attracted $3.8 billion, ranking as the 10th-highest monthly inflow ever for the category, while equity ETFs managed just $32 billion, their 40th-best month historically. "The redesign and paradigm shift of global macroeconomic modalities just pressurized markets," wrote Matthew Bartolini, head of Americas ETF research at State Street Global Advisors in the report. He compared the effect of recent tariff announcements to carbonated water, noting, "The infusion of the exogenous tariff variable, like CO2 gas being dissolved in spring water to form carbonic acid, transformed the market's general properties." Investors Seek Safety with Defensive Plays The major reversal came from sector ETFs, which experienced their worst-ever monthly outflows at $11 billion. The selloff was widespread, with only the defensive utilities sector managing inflows of $171 million. The outflows pushed the three-month rolling total to $21.5 billion, the second-worst on record. Credit sectors also faced pressure, with a record $15 billion fleeing from investment-grade corporate bonds, high-yield bonds and bank loan ETFs. The bank loan and collateralized loan obligation category saw its largest-ever outflow of $5 billion, while investment-grade corporates shed $4.6 billion, also a record. According to Bartolini, these outflows represent "a complete reversal of the trend leading up to April, as investors were visibly overweight credit, reflecting a bias toward an environment of rising growth." That economic environment now appears less likely given recent data and the potential impact of tariffs on consumption. Cautious investors poured $19 billion into ultra-short and short-term government bond ETFs in April, marking their second-largest monthly inflow ever, behind only the $20.2 billion recorded during March 2020 at the onset of the pandemic. The three-month rolling total reached a record $34 billion, exceeding the previous high of $27 billion set in 2022 during aggressive Federal Reserve tightening.
