Understanding the reasons behind mutual fund conversion to ETFs
Recorded on 12th May 2023.
Ron O’Hanley, State Street’s Chairman and CEO discusses the rise of mutual fund conversions to ETFs with Dave Butler, co-CEO of Dimensional Fund Advisors. In the three-plus years since the SEC adopted the “ETF Rule,” Dimensional has become the largest active ETF issuer.
Founded in 1981, Dimensional has a long history of applying cutting-edge financial research to practical investing. They have applied this expertise as the first company to convert mutual funds to ETFs at scale.
As the ETF market continues to evolve, Butler predicts that active ETFs are the next step in delivering value on the mutual funds side, offering investors a differentiated opportunity to access higher returns at a reasonable cost.
Celebrating 30 years of ETF innovation
2023 marks the 30th anniversary of the launch of the industry’s first US-listed exchange-traded fund. Co-created by State Street Global Advisors, the Standard & Poor’s Depositary Receipts ꟷ better known as the SPDR® S&P 500® ETF, or SPY ꟷ revolutionized index investing, liquidity, asset allocation, intermediary distribution, portfolio construction and overall market access.
Today, among the nearly 12,0001 ETFs in existence, SPY is the largest2, most liquid3 and most heavily traded4 ETF in the world. Our ETF@30 video series examines the past, present and future of ETFs ꟷ and their impact on the world’s financial markets and industries.
Our servicing solutions for ETFs adapt to the evolving financial landscape and tap into our market-leading asset servicing capabilities to support your ETF ambitions across the entire fund lifecycle.