State Street Investment Management announced that, effective December 1 2025, it will bring the distribution and marketing of its 11 Select Sector SPDR ETFs in‑house, ending a long‑standing relationship with ALPS Portfolio Solutions Distributor, Inc. The change consolidates the firm’s distribution network and strengthens its control over the client experience.
The move allows State Street to retain distribution fees that previously flowed to the third‑party distributor. While the company has not disclosed exact savings, the expectation is that capturing the full fee stream and reducing marketing costs will improve the net revenue profile of the ETF suite.
The 11 ETFs, which cover all S&P 500 sectors, had a combined net asset value of $332 billion as of September 30 2025. The rebranding to include the State Street name aligns with a broader corporate rebrand from State Street Global Advisors to State Street Investment Management, reinforcing the firm’s 50‑year legacy in ETF markets.
The announcement follows a November 2025 share‑split program that took effect on December 5 for five of the ETFs, demonstrating ongoing product optimization. The in‑house distribution also supports new online tools and a cross‑functional team that will enhance investor access and data transparency.
Management highlighted that the change will not alter the ETFs’ investment objectives or strategies. Anna Paglia, Chief Business Officer, said the consolidation will deliver a more unified, investor‑centric experience and improve operational efficiency.
While the announcement does not include financial metrics, the strategic shift is expected to improve margin profile by reducing third‑party fees and streamlining marketing spend, positioning State Street to capture higher net revenue from its flagship sector ETFs.
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