SSGA – BOSTON, MINNEAPOLIS and CHICAGO – Clients of RBC Correspondent Services (RBC CS) will soon have access to a new suite of cost-effective and technology-enabled ETF models. Designed and maintained by State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), the new ETFs will be delivered through NextCapital’s open-architecture digital advice platform.
The partnership provides RBC correspondent firms with five new risk-based SSGA custom model ETF portfolios, designed and maintained by SSGA’s Investment Solutions Group, a dedicated team of more than 75 investment professionals managing over $180 billion in assets. The ETF model portfolios will be offered through an innovative interface provided by NextCapital. Each model will contain 8-12 SPDR® ETFs and have investment minimums of $5,000, providing broader and more cost-effective access for smaller account holders, as well as an efficient way for advisors to accommodate them. The model portfolios will consist of ETFs from the RBC CS No-Transaction Fee ETF program.
“The robo-advisory landscape is quickly evolving, and we are thrilled to be leading the effort to deliver innovative investment options to RBC’s correspondent firms,” said Nick Good, co-head of the Global SPDR business at State Street Global Advisors. “The combination of SSGA’s thought leadership in portfolio construction and NextCapital’s market leading technology will deliver a compelling and seamless user experience.”
“The new ETF portfolios will enable our independent broker dealer clients to provide a variety of cost-effective investment options to help meet the changing regulatory demands,” said Brett Thorne, Head of RBC Correspondent and RBC Advisor Services. “We will always go the extra mile to provide our clients with exceptional products and investment choices they need for their clients.”
Earlier this year, SSGA and RBC CS announced the launch of No-Transaction Fee (NTF) ETF program, which allows correspondent firms to diversify their clients into broad market segments at a relatively low-cost without incurring transaction fees.
“With these new ETF portfolios available through NextCapital’s digital advice platform, RBC CS firms will be able to offer personalized, managed accounts with well diversified portfolios,” said Dirk Quayle, President of NextCapital.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs.