Publications

Alpha ambition meets index discipline: introducing Systematic Enhanced Active

State Street Investment Management is launching six Enhanced Active ETFs, which combine the exposure, liquidity, and low-cost attributes of index strategies, with potential incremental alpha returns from our proven proprietary active alpha generation processes.

26 novembre 2025 Temps de lecture: 5 min

Ryan Reardon

Senior Equity ETF Strategist

Index ETFs remain foundational for scale and efficiency — but investors are also additionally seeking strategies that can deliver incremental alpha without sacrificing transparency or cost discipline. State Street Investment Management has launched six Enhanced Active ETFs, which combine the exposure, liquidity, and low-cost attributes of index strategies with the added benefit of potential incremental alpha returns.

For investors holding a core index ETF, introducing an enhanced strategy is not about abandoning the philosophy of indexing, but rather optimising it. Enhanced is a purpose-built approach designed to deliver modest, but consistent outperformance through disciplined, risk-aware decision-making. Enhanced seeks to balance consistency with scalability, by operating within a clearly defined tracking error range of 1–2% on average. The process behind State Street’s enhanced equity offering is designed to deliver an objective of maximizing the information ratio (Figure 1). This approach preserves the foundational benefits of passive investing while leveraging the strengths of systematic active methods, where each unit of risk must be efficiently rewarded for clients.

Figure 1: Enhanced Active investment process

1	Factor selection	Proprietary alpha model drives stock selection Generate expected excess return forecasts on +23,000 stocks daily
2	Portfolio construction	Efficient translation of alpha model Strategy constraints Client-specific constraints
3	Implementation	Oversight and validation of trade lists Optimize trade execution
4	Monitoring / learning	Monitor portfolio characteristics and performance Systematic process improvement ideas

Source: State Street Investment Management, as of 31 October 2025. For illustrative purposes only.

Traditional fundamental or pure-alpha active managers often take unconstrained deviations from a benchmark, concentrating capital in high-conviction ideas. This can lead to both significant outperformance or underperformance, and importantly, may not be suitable for investors targeting a balanced asset allocation and risk profile. The decision to integrate enhanced active ETFs depends on an investor’s tolerance for tracking error. Enhanced strategies are designed to inhabit the "sweet spot" of active returns and are designed to provide a smoother return trajectory over a full market cycle compared with more unconstrained strategies.

Our Enhanced Active capabilities

State Street Enhanced Equity Strategies aim to provide a modest amount of excess return, before expenses, while closely adhering to benchmark characteristics. Our enhanced active strategies have shown solid risk-adjusted results, distinguishing themselves in both emerging market and developed market universes. Our track records demonstrate a beneficial mix of robust and consistent alpha, alongside thoughtful risk-controlled processes. The new share classes are based on existing SICAV funds. The figures below provide an example of the objectives (Figure 2) and performance (Figure 3) of our systematic enhanced approach using the emerging markets strategy as an example.

Figure 2: Portfolio objectives and constraints (emerging markets equity)

Investment objective*	Seeks to outperform the MSCI Emerging Markets Index by 0.75%–1:00% (on an annualized basis) over the long term. With a projected active risk, measured by tracking error, of approximately 0.25% to 1.75%.
Benchmark	MSCI Emerging Markets Index
Inception	1 July 2007
AUM	$5,357million*
Constraints**
Security Level	+/- 0.20%
Country Level	+/- 0.20%
Sector Level	+/- 0.20%
Off-Benchmark	10%
Expected Turnover (p.a.)	20–40% one way
Other Parameters	Long Only Cash typically < 2%

Source: State Street Investment Management, as of 30 September 2025. For Illustrative Purposes Only. *There can of course be no assurance that any Portfolio will achieve that level of performance or will maintain that level of active risk. **At the time of trading. The above targets are estimates based on certain assumptions and analysis made by State Street Investment Management. There is no guarantee that the estimates will be achieved.

Figure 3: Enhanced Active investment process

	Emerging Markets Enhanced (Gross)	Emerging Markets Enhanced (Net)	MSCI Emerging Markets Index	Excess Return (Gross)	Excess Return (Net)
Year-to-date (%)	28.36	27.44	27.53	0.83	-0.09
1-Year (%)	19.60	18.46	17.32	2.28	1.14
3-Year (%)	21.43	20.28	18.21	3.22	2.07
5-Year (%)	9.46	8.42	7.02	2.44	1.40
10-Year (%)	9.32	8.32	7.99	1.33	0.33

Source: State Street Investment Management, as of 30 September 2025. Past performance is not a reliable indicator of future performance. Volatility and performance statistics are those of the composite. The performance shown is of a composite consisting of all discretionary accounts using this investment strategy. The above information is considered supplemental to the GIPS presentation for this Composite. A GIPS presentation is available upon request. Performance returns for periods of less than one year are not annualized. The performance figures contained herein are provided on a gross and net of fees basis. Gross of fees do not reflect and net of fees reflect the deduction of advisory or other fees which could reduce the return. Some members of this composite may accrue administration fees. The performance includes the reinvestment of dividends and other corporate earnings and is calculated in USD. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income as applicable.

Quality control and outperformance potential

Enhanced active equity ETFs should not be viewed as a replacement for passive indexing, but as a powerful complement. Investors interested in balanced asset allocation can take advantage of scale through index equity ETFs while also layering on enhanced active strategies which introduce a mechanism for quality control, tactical agility, and potential outperformance.

State Street Investment Management (“SSIM”) has long been a leader in index ETFs, with our first European-listed ETFs dating back to 2001. Index tracking ETFs have expanded significantly, since then, in assets and scope. Investors use ETFs as allocation tools to access a range of market-beta exposures at relatively modest fee levels, compared to traditional active funds. Now, appetite for active strategies is growing - since 2020, assets in European-listed enhanced active ETFs have increased at a compound annual growth rate of over 70%. Most assets are in global ($22.3 billion*) and U.S. ($17.5 billion) regional equities.¹

How can investors navigate this theme?

At State Street Investment Management, our Enhanced Active investment team has an established track record of strong performance relative to the benchmark and to peers.

Further reading on the rise of active ETFs

Footnotes

Disclosure

Marketing Communication

For institutional / professional investors use only.

Important Risk Information

Israel: No action has been taken or will be Marketing Communicationtaken in Israel that would permit a public offering of the Securities or distribution of this sales brochure to the public in Israel. This sales brochure has not been approved by the Israel Securities Authority (the ‘ISA’).

Accordingly, the Securities shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1978, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Securities are being purchased for its own account and not for the purpose of re-sale or distribution.

This sales brochure may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent.

Nothing in this sales brochure should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. State Street is not licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder.

This sales brochure does not constitute an offer to sell or solicitation of an offer to buy any securities other than the Securities offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.

For Investors in Austria: The offering of SPDR ETFs by the Company has been notified to the Financial Markets Authority (FMA) in accordance with section 139 of the Austrian Investment Funds Act. Prospective investors may obtain the current sales Prospectus, the articles of incorporation, the KID as well as the latest annual and semi-annual report free of charge from State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany with a representation office at Brüsseler Strasse 1-3, D-60327 Frankfurt am Main Germany ("State Street Global Advisors Germany"). Munich T +49 (0)89 55878 400. Frankfurt T +49 (0)69 667745 000.

For Investors in Finland: The offering of funds by the Companies has been notified to the Financial Supervision Authority in accordance with Section 127 of the Act on Common Funds (29.1.1999/48) and by virtue of confirmation from the Financial Supervision Authority the Companies may publicly distribute their Shares in Finland. Certain information and documents that the Companies must publish in Ireland pursuant to applicable Irish law are translated into Finnish and are available for Finnish investors by contactingState Street Custodial Services (Ireland) Limited, 78 Sir John Rogerson’s Quay, Dublin 2, Ireland.

For Investors in France: State Street Global Advisors Europe Limited, France Branch (“State Street Global Advisors France”) is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense - Tour A - La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 931 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92.

For Investors in Germany: State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany with a representation office at Brüsseler Strasse 1-3, D-60327 Frankfurt am Main Germany ("State Street Global Advisors Germany"). Munich T +49 (0)89 55878 400. Frankfurt T +49 (0)69 667745 000. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2.

For Investors in Italy: State Street Global Advisors Europe Limited, Italy Branch (“State Street Global Advisors Italy”) is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 - REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 - 20125 Milan, Italy. T: +39 02 32066 100. F: +39 02 32066 155.

For Investors in Luxembourg: The Companies have been notified to the Commission de Surveillance du Secteur Financier in Luxembourg in order to market its shares for sale to the public in Luxembourg and the Companies are notified Undertakings in Collective Investment for Transferable Securities (UCITS).

For Investors in the Netherlands: State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2.

For Investors in Norway: The offering of SPDR ETFs by the Companies has been notified to the Financial Supervisory Authority of Norway (Finanstilsynet) in accordance with applicable Norwegian Securities Funds legislation. By virtue of a confirmation letter from them Financial Supervisory Authority dated 28 March 2013 (16 October 2013 for umbrella II) the Companies may market and sell their shares in Norway.

For Investors in Spain: SSGA SPDR ETFs Europe I and II plc have been authorized for public distribution in Spain and are registered with the Spanish Securities Market Commission (Comisión Nacional del Mercado de Valores) under no.1244 and no.1242. Before investing, investors may obtain a copy of the Prospectus and Key Information Documents, the Marketing Memoranda, the fund rules or instruments of incorporation as well as the annual and semi-annual reports of SSGA SPDR ETFs Europe I and II plc from Cecabank, S.A. Alcalá 27, 28014 Madrid (Spain) who is the Spanish Representative, Paying Agent and distributor in Spain or at www.ssga.com. The authorized Spanish distributor of SSGA SPDR ETFs is available on the website of the Securities Market Commission (Comisión Nacional del Mercado de Valores).

For Investors in Switzerland: State Street Global Advisors AG, Kalanderplatz 5, 8045 Zürich. Registered with the Register of Commerce Zurich CHE-105.078.458. Tel: + 41 44 245 7000.

Ireland: State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office: Sir John Rogerson’s Quay, Dublin 2, Registered number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300.

Belgium: State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2.

Investing involves risk including the risk of loss of principal.

Diversification does not ensure a profit or guarantee against loss.

Past performance is not a reliable indicator of future performance.

Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income as applicable.

All the index performance results referred to are provided exclusively for comparison purposes only. It should not be assumed that they represent the performance of any particular investment.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or epresentations of any kind relating to the accuracy, completeness ortimeliness of the data and have no liability for damages of any kind relating to the use of such data.

The stocks mentioned are not necessarily holdings invested in by SSGA. References to specific company stocks should not be construed as recommendations or investment advice. The statements and opinions are subject to change at any time, based on market and other conditions.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability orcompleteness of, nor liability for, decisions based on such information and it should not be relied on as such.

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication

Actively managed funds do not seek to replicate the performance of a specified index.

The Strategy is actively managed and may underperform its benchmarks. An investment in the strategy is not appropriate for all investors and is not intended to be a complete investment program. Investing in the strategy involves risks,
including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.

Investments in mid-sized companies may involve greater risks than those in larger, better-known companies, but may be less volatile than investments in smaller companies.

Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.

Investing in foreign-domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.

Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's sustainable strategy criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's sustainable strategy criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

Index returns are unmanaged and do not reflect the deduction of any fees or expenses.

Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income as applicable.

The Fund/share class may use financial derivatives instruments for currency hedging and to manage the portfolio efficiently. The Fund may purchase securities that are not denominated in the share class currency. Hedging should mitigate the impact of exchange rate fluctuations however hedges are sometimes subject to imperfect matching which could generate losses.

The views expressed in this material are the views of SPDR Strategy and Research through 12 November 2025 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®, US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.

The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the applicable regional regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

United Kingdom: In the UK, this document has been issued by State Street Global Advisors Limited (“SSGAL”). Authorized and regulated by the Financial Conduct Authority, Registered No.2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place,Canary Wharf, London, E14 5HJ. Telephone: 020 3395 6000. Facsimile: 020 3395 6350 Web: http://www.ssga.com. This document has been issued by State Street Global Advisors Europe Limited (“SSGAEL”), regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered number 49934. T: +353 (0)1 776 3000. Fax: +353 (0)1 776 3300. Web: www.ssga.com.

ETFs trade like stocks, are subject to investment risk and will fluctuate in market value. The investment return and principal value of an investment will fluctuate in value, so that when shares are sold or redeemed, they may be worth more or less than when they were purchased. Although shares may be bought or sold on an exchange through any brokerage account, shares are not individually redeemable from the fund. Investors may acquire shares and tender them for redemption through the fund in large aggregations known as “creation units.” Please see the fund’s prospectus for more details.

Please refer to the Fund’s latest Key Information Document (KID)/Key Investor Information Document (KIID) and Prospectus before making any final investment decision. The latest English version of the prospectus and the KID/KIID can be found at www.ssga.com. A summary of investor rights can be found here: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-spdr-investors-rights-summary.pdf.

Note that the Management Company may decide to terminate the arrangements made for marketing and proceed with de-notification in compliance with Article 93a of Directive 2009/65/EC.

State Street Global Advisors Luxembourg SICAV (“Company”) is an open-ended investment company with variable capital having segregated liability between its sub-funds. The Company is organized as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of Luxembourg and authorized as a UCITS by the Luxembourg supervisory authority of the financial sector i.e. Commission de Surveillance du Secteur Financier. The Company may from time to time, with the prior approval of the CSSF, create different sub-funds representing separate portfolios of assets with each sub-fund comprised of one or more classes, including, where applicable, exchange traded share classes.

7641877.9.6.EMEA.INST

Exp. Date: 30/11//2026

More on Active Investing

Voir tous les aperçus