State Street's German arm to Launch ETFs

State Street's German arm to Launch ETFs

State Street's German arm to Launch ETFs

In an interview that was published today on Handelsblatt.com, a Germany-based financial news Web site, the head of State Street's German arm announced that State Street Global Advisors (SSgA) plans to launch nine exchange-traded funds (ETFs) based on Frankfurt's new market segment for ETFs.

According to the Handelsblatt.com article, SSgA's Klaus Esswein said the new ETFs will be based on different sector indexes within the Standard & Poor's 500 index, such as utilities, technology, industry, finance, energy, consumer goods, services, basic industry, and cyclical industries and transport. Frankfurt's ETF segment was established in April 2000, and the new SSgA funds will be the first based on German indexes. So far, the Frankfurt ETF segment has been restricted to products based on the pan-European Euro Stoxx-50 and Stoxx-50 indexes.

State Street U.S., based in Boston, declined to comment when asked about the details of the the new German ETFs discussed by Esswein, raising questions as to whether Esswein spoke during a quiet period.

Esswein's comments, which come on the heels of SSgA's announcement to launch Australia-based ETFs, further highlight State Street's desire to establish itself as a major player in the global ETF market.