State Street Launches 3 Active Tech ETFs
The products aim to capitalize on market inefficiencies and digital trends while managing volatility, the firm says.
State Street Global Advisors on Tuesday introduced three actively managed exchange-traded funds focused on digital assets and related technology, sub-advised by Galaxy Asset Management.
The SPDR Galaxy Digital Asset Ecosystem ETF (DECO), SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and SPDR Galaxy Transformative Tech Accelerators ETF (TEKX) aim to capitalize on market inefficiencies and trends in the digital landscape, the firm said.
“Digital assets and blockchain technology have the power to transform financial markets as well as the economy over the next decade, and a number of companies will grow and flourish thanks to their contribution to this transformative technology,” said Anna Paglia, chief business officer of State Street Global Advisors.
“Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto. We believe the next evolution of this market is the introduction of actively managed digital asset portfolios that help investors tap into the benefits of diversification, which is appealing to a wider range of investors, and why we are excited to bring these three products to market.”
An active manager can help gain exposure to cryptocurrencies and to firms leading the technological change, while managing volatility, State Street said.
The firm expects the future of digital assets to encompass cryptocurrencies, tokens and technology that operates in the blockchain and surrounding ecosystem, such as semiconductors, data warehouses and miners.
The SPDR Galaxy Digital Asset Ecosystem ETF seeks to provide long-term capital appreciation through a portfolio of companies positioned to benefit from the growing adoption of the blockchain and digital asset industries, as well as cryptocurrency exposures through ETFs and futures. It’s designed to pursue potential growth from further digital asset adoption and has a 0.65% expense ratio.
The SPDR Galaxy Hedged Digital Asset Ecosystem ETF seeks to provide long-term capital appreciation through a portfolio of the same type of companies, and to manage volatility through covered call options and protective put options on investments held in the portfolio. It has a 0.90% expense ratio.
The SPDR Galaxy Transformative Tech Accelerators ETF seeks to provide long-term capital appreciation to investors through companies in the value chain supporting new “disruptive” technologies, including blockchain and artificial intelligence. The fund is designed to pursue potential long-term secular growth and has a 0.65% expense ratio.
State Street Global Advisors said it is the world’s fourth-largest asset manager, with $4.37 trillion under care, including about $1.4 billion in ETF assets.
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