State Street Global Advisors (SSgA) is unveiling a new range of ETFs across major European markets in the first quarter of next year.
The offering will include a core set of equity and fixed income ETFs alongside additional innovative funds, bolstering SSgA's presence in the European ETF arena.
SSgA has a small range of SPDR ETFs already available in France and Germany, tracking the MSCI Europe, MSCI Europe Small Cap, and a series of MSCI Europe Sector indices.
The firm also plans to list this existing set of funds in Italy and Switzerland at the start of next year.
SSgA head of intermediaries EMEA Vin Bhattacharjee says: "We physically replicate our funds. We have no intention of doing anything synthetic at the moment, although we might consider this in a year or so down the road."
Bhattacharjee says SSgA will not be "pricing" itself into the market by offering funds with the lowest total expense ratios. He says the State Street brand will differentiate the firm's products, as a well-established name associated with quality and transparency.
He says: "We did some independent brand analysis and found that globally, State Street is the most recognised ETF brand, more so than iShares. We found it has great acceptance in Europe, among market participants and sophisticated investors."
He adds indexing is also a core part of the firm's business, so extending to ETFs in Europe is a natural development, especially with SSgA's distribution capabilities in the region.
SSgA engages in securities lending in its ETFs, by loaning out the index constituents held by the fund, and is in the process of refining its policy.
Bhattacharjee says: "We will come out with transparency on what percentage of revenue goes back into the funds.
"There's obviously quite a lot of focus on synthetic products and transparency, but securities lending requires this too and we'll be the leaders in this."
SPDR is the number one ETF provider in Asia and one of the top two issuers in the US. SSgA was the first company to launch an ETF in the US in 1993.
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