ETFs for the people, of the people, by the people

Yasmine Raso

Senior Journalist, Financial Newswire

26 September 2022

Continuing the legacy of exchange traded funds (ETFs) as an investment mechanism that is purposeful and aligned with the specific needs of each investor has led State Street Global Advisors to win the ETF Provider category at the 2022 Fund Manager of the Year Awards, hosted by Financial Newswire.

Having played a major part in kickstarting the global ETF revolution and now with over 15 ETFs available in Australia, State Street’s Standard & Poor’s depository receipt (SPDR) family of funds is all about the people.

“When we develop our SPDR ETF range, it’s our clients that we’re always thinking about,” Kathleen Gallagher, Head of SPDR ETFs at State Street Australia Limited, told Financial Newswire.

“We’re thinking about their challenges and how our products can meet their needs. Clients are central to everything we do at State Street Global Advisors. Our approach when it comes to developing our SPDR ETFs is to be purposeful and we seek to provide well-tailored, well-structured ETFs that are all designed to meet clients’ particular needs.

“We don’t subscribe to the ‘build it and they will come’ mentality. We have always developed our SPDR range to align with investor needs. It always comes back to our clients and doing what’s best for them and meeting the investment challenges they are facing.”

As a mixed bag of opportunities, growth and purpose, ETFs have only continued to deliver on a wide range of investor expectations – no matter how much they evolve. Gallagher said the “proof is in the pudding” for ETFs, especially after the industry hit a major milestone last year to record USD$10 trillion in global assets.

“Earlier this year, we evolved four of our SPDR ETFs to improve those funds’ ESG profiles and elements without compromising the original investment objective of the fund. This was done in response to the demands of our clients,” she said.

“ETFs as an investment vehicle just continue to go from strength to strength. It passes each test thrown at it, whether it’s been the GFC, COVID-19 or this year’s market downturn.

“What we’ve seen during times of market stress or crisis is that the ETF trading volumes go up which highlights how ETFs continue to function how they were intended, acting as buffers and sources of liquidity in these times.

“That’s down to better financial education and improvements in technology that have helped ETFs become more accessible to a broader range of investors, including younger Australians who are investing via a range of online digital platforms.”