State Street Survey points to a bright future for both digital assets and semi-transparent ETFs in the US

As part of a wide ranging 2020 industry trend outlook, a survey of US asset managers and asset owners conducted by State Street Corporation predicts continued prevalence of digital assets as well as a bigger role in the industry for semi-transparent active ETFs.

Given the more supportive regulatory stance the Securities and Exchange Commission (SEC) has recently taken toward semi-transparent active ETFs, many respondents now see a much bigger role for these vehicles in the market. Nearly half (47 per cent) say semi-transparent ETFs will play a significant role in their firm’s future portfolio strategy. Similarly, 46 per cent of respondents say these products will help to stem the flow of assets from active investments to passive.

“The survey supports what we have anecdotally believed for some time – the future is bright for active equity ETFs, as well as firms seeking to outsource trading activities and increase allocations to digital assets-related investments,” says Nadine Chakar, global head of State Street’s Global Markets business unit. “It’s an exciting time for technology and innovation in the industry, and ultimately investors will benefit from new technologies and a wider range of choices for constructing portfolios.”