State Street’s flagship fund loses $23 billion in one week

Discussion in 'Wall St. News' started by dealmaker, Feb 12, 2018.

  1. dealmaker

    dealmaker

    ByGreg Ryan – Law and Money Reporter, Boston Business Journal

    2 hours ago

    With outflows of over $23 billion,State StreetCorp.’s flagship index fund was hit harder by last week’s market turmoil than comparable products from some of the firm’s biggest competitors.

    From Feb. 5 through Feb. 9, investors pulled $23.1 billion more from State Street’s (NYSE: STT) SPDR S&P 500 exchange-traded fund than they put in, according to data from the research firm FactSet. That’s the highest-ever weekly outflows for the fund, Bloombergreported Sunday night.

    The State Street fund is the largest ETF in the world and the first ever listed to trade in the U.S. Built to mimic the ups and downs of the Standard & Poor’s 500 index, the product marked its 25-year anniversary in January.

    Other large funds that track the S&P 500, while smaller than State Street’s fund, did not suffer anywhere near the same level of outflows. In fact, the next-largest ETF,BlackRockInc.’s (NYSE: BLK) iShares Core S&P 500 fund, experienced net inflows of $1.1 billion last week, according to FactSet.

    The State Street fund has $256 billion in assets under management, compared with $145 billion for the BlackRock fund, FactSet data show.

    Vanguard Group’s $83 billion S&P 500 ETF saw net outflows of $203 million during that time period.

    The stock market entered correction territory last week, as investors were thought to be spooked by the prospect of rising inflation and ultimately rising interest rates. As of early Monday afternoon, the Dow Jones Industrial Average was up about 2 percent.

    The State Street S&P 500 fund accounts for just over a quarter of the ETF industry’s total average daily trading volume, according to the company.

    According toMorningstarDirect, the fund has now lost more money from investors than it's brought in on the year.

    https://www.bizjournals.com/boston/...reet-s-flagship-fund-loses-23-billion-in.html
     
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  3. Maybe they need to focus more on trading and less on putting up stupid statues.
     
  4. Smart money?