State Street launches new ETF to tap into $20T asset-backed securities market
State Street Corporation, a Boston-based financial giant, has expanded its investment offerings with a new exchange-traded fund. The State Street® IG Public & Private ABS ETF (PRAB) launched on March 11, aiming to give investors broader access to asset-backed securities. This move comes as the company's own stock faces recent declines, reflecting wider trends in the financial sector.
The new ETF targets the global asset-backed finance market, which now exceeds $20 trillion. Despite its size, exposure to asset-backed securities remains limited in many institutional portfolios. State Street's latest product seeks to fill that gap.
State Street's stock performance has shown mixed results over the past year. While shares surged 43.7% over the last 52 weeks—outpacing the financial ETF (VFH), which rose just 4.5%—recent months have seen declines. Year-to-date, the company's shares have dropped roughly 6%, compared to a 10.7% fall in the broader financial ETF. Over the last three months, State Street's stock slipped nearly 5%, while the sector as a whole declined 11.3%. The company's market capitalisation now stands at approximately $33.8 billion, down from higher peaks. In January, shares hit a 52-week high of $137.05, but they currently trade about 11.5% below that level. Since February, the stock has remained under its 50-day moving average of $129, though it stays above the 200-day average of $117.05. State Street provides a wide range of financial services, including custody, fund administration, trading, and investment management. The firm also offers analytics, data management, and integrated technology platforms to clients worldwide.
The launch of PRAB highlights State Street's push to diversify investment options amid a fluctuating stock performance. With a market cap of $33.8 billion, the company remains a major player in financial services, though its shares have yet to recover recent losses. The new ETF could attract investors looking for exposure to the vast but underrepresented asset-backed securities market.
