SSgA Eyes Hedge Fund And Commodities ETFs

By
Matt Hougan
November 11, 2009
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State Street Global Advisors has filed a 40-APP filing with the Securities and Exchange Commission asking for the necessary permissions to launch a hedge fund replication ETF.

The filing?an initial step in the ETF registration process that takes place prior to the writing of a prospectus?does not mean the fund will launch anytime soon. It just means SSgA is laying the groundwork to consider such a product in the future.

The fund is described in the filing as the SPDR AlphaSimplex Absolute Beta ETF. It would track a rules-based index that invests in exchange-traded funds tied to equities, government bonds, short-term interest rates, currencies and commodities. The fund would aim to “approximate the common exposures of a broad universe of hedge funds in a relatively liquid, transparent and cost efficient manner.”

The fund would be somewhat similar, in that case, to the IQ Hedge Multi-Strategy Tracker ETF (NYSEArca: QAI) from IndexIQ. QAI also aims to deliver returns similar to a broad index of hedge fund strategies, although it uses an underlying portfolio of ETFs to achieve those returns. Currently, it has $68 million in assets.

The

State Street

filing also lays the groundwork for the firm to launch a commodity futures fund tied to the DJ-UBS Commodity Index. If and when it launches, it would be the first SSgA ETF tied to the commodity futures markets.

The filing is available here.

 

ETF DAILY DATA

The small-cap fund 'IWM' added money on Thursday, Jan. 22, as net inflows and markets stoked higher by eurozone QE news lifted total U.S.-listed ETF assets above $2 trillion.

A slew of iShares funds, including the eurozone-focused 'EZU,' paced the firm's issuer-leading inflows on Thursday, Jan. 22. The ECB's announcement about aggressive QE in the eurozone stoked markets and lifted total U.S.-listed ETF assets to more than $2 trillion.

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