Does State Street’s Entry Into Actively Managed ETFs Doom Mutual Funds? (STT, RLY, INKM, GAL)
At the end of March there were 7,709 different mutual funds to choose from in the U.S., with almost $12.5 trillion in assets invested, the Investment Company Institute reports. Meanwhile, thanks to the launch of three new ETFs this week by State Street Global Advisors (NYSEARCA:STT), the universe of actively managed ETFs has now ballooned to 47.
That’s right, for every one actively managed ETF, there are currently 164 mutual funds in existence. But fear not, there are dozens more of these new super-liquid upstarts in the chute that will come to the market this year, and countless others are expected to follow.
“These are the first three, but they won’t be our last,” says Tim Coyne, Global Head of ETF Capital Markets at State Street Global Advisors, adding that they already have three others awaiting SEC approval. “This is definitely not our last foray into the active space,” he says in the attached video –which was taped following a conference on the issue, hosted by the New York Stock Exchange.
See the full “Breakout” interview below:
Related: (NYSEARCA:BOND), (NYSEARCA:RLY), (NYSEARCA:INKM), (NYSEARCA:GAL)