Equity exchange-traded funds, rather than fixed-income options, are the top choice of insurance investors, according to State Street’s Meta Curry.
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.
Once used for cash or transition management, exchange-traded funds are taking a bigger role in institutional portfolios.
The world’s largest endowment also bought 1 million shares of Amazon, despite cutting back sharply on Alphabet, Meta and Microsoft.
Actively managed real estate funds were also among the top outperformers for the 12 months that ended June 30.
It was a tough year, but margins didn’t suffer that much, ISS Market Intelligence says.
Franklin Templeton says high rates and infrastructure needs will favor lower-cost shares.
Morningstar research also says fees are ‘a reliable predictor of future returns.’