Insurers Find Greater Use for ETFs
Exchange-traded fund usage has reached a record high among general account investors that are using the vehicles for several purposes.
Exchange-traded fund usage has reached a record high among general account investors that are using the vehicles for several purposes.
In partnering with State Street on exchange-traded funds, the Texas Permanent School Fund and the University of California Board of Regents demonstrate novel uses for the vehicles.
Growing sophistication and customization of exchange-traded funds is expanding their use by investors to more strategic, long-term investments.
Equity exchange-traded funds, rather than fixed-income options, are the top choice of insurance investors, according to State Street’s Meta Curry.
The firm has applied for permission to launch 13 exchange-traded-fund share classes, but significant movement is not anticipated in the immediate future, experts say.
Institutions are backing exchange-traded funds as anchor investors, but they may have to sacrifice some control to reap the benefits.
While not a driver of growth in exchange-traded funds, institutional investors have found new use cases for the investment vehicles.