State Street Global Services

ETF Services

The continued uncertainty in the financial marketplace has led investors in search of products with intraday liquidity, a lower cost structure and availability across diverse asset classes. As a result, exchange traded funds (ETFs) are experiencing explosive growth. Couple these benefits with the inherent tax efficiency of the product structure and we have a market growing global AUM at approximately 30 percent CAGR during the last decade*. Institutional investors are using ETFs as cost-effective hedging tools and for market coverage. Retail investors are using ETFs to gain broad-based diversification and exposure to unique asset classes. ETF sponsors, however, face numerous challenges to ensure they understand and can leverage best practices for operating these funds in today’s rapidly changing and competitive environment.

State Street’s industry-leading global ETF servicing capability leverages a state-of-the-art “cloud-enabled” platform, providing full integration to core technology, end-to-end automation and full client transparency via an ETF dashboard available through, our client information delivery platform. Utilizing our full-service custody and accounting model, we fully integrate index and basket processing to create seamless process for managing your ETFs. As the first global custodian to service ETFs in Australia, China, Hong Kong, Luxembourg, Taiwan and the United States, and the only provider servicing each of the major ETF markets, State Street’s institutional knowledge and breadth of experience can help you launch new funds and offer individually customized solutions designed to provide accurate and efficient services for your ETFs.

To support your launch of new ETFs or growth of existing ETFs, we can provide an à la carte or full service model to tailor the level of support and automation you receive. Our broad capabilities include:

  • Global custody servicing

  • Multicurrency accounting

  • Customized basket creation calculation and dissemination

  • Dedicated AP relationship management

  • Web-based order creation and redemption

  • Transfer agency

  • Cross-border DVP settlement

  • Fund administration

  • ETF client dashboard

  • Industry intelligence

  • Assisted trading

  • Daily performance attribution

  • Securities lending

Our service encompasses actively and passively managed ETFs, including fixed income and equity, inverse, leveraged, derivative-based and commodity funds — all regardless of domicile. We support numerous ETF legal structures and have automated links to major clearing and transfer agents around the world, providing services across regions in the Americas, Europe and Asia Pacific. Our basket creation and dissemination capabilities are fully integrated with our global suite of services to provide an automated solution within and across markets.

Our global presence allows us to handle your needs from anywhere in the world with an operating model that takes advantage of multiple time zones. With in-depth local expertise and worldwide regulatory knowledge, we closely monitor any developments that may affect ETFs and can provide updates to ETF boards and sponsors.


*State Street Global Advisors, Global ETF Strategy & Consulting, as of 12/31/11

References to specific market performance are not an investment recommendation; before making any investment investors should consider the risks involved in such investments.

ETFs are not insured by the FDIC; are not deposits or other obligations of State Street Bank and Trust Company and are not guaranteed by the institution; and are subject to investment risks, including possible loss of the principal invested.

As of December 31, 2008, SPDR ETFs are advised by SSgA Funds Management Inc., a registered investment adviser and a wholly owned subsidiary of State Street Corporation.

ETFs trade like stocks, are subject to investment risk and will fluctuate in market value.

The “SPDR®” trademark is used under license from The McGraw-Hill Companies, Inc. (“McGraw-Hill”). No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by McGraw-Hill. Standard & Poor’s®, S&P®, SPDR®, S&P 500® and Select Sector SPDRs® are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by State Street Bank and Trust Company.

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.

State Street Institutional Trust funds are not insured by the FDIC; are not deposits or other obligations of State Street Bank and Trust Company and are not guaranteed by the institution; and are subject to investment risks, including possible loss of the principal invested.

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 Read it carefully.


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