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State Street launches UCBG ETF backed by $2.5 billion initial investment

The new State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF targets returns from an index split between 90% large-cap S&P 500 exposure and 10% investment-grade short-duration corporate bonds.

Reported · Written up by our desk · ETFs

State Street Investment Management has debuted the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF, ticker UCBG, on September 2, according to ETF Trends.

The fund is built from a collaboration with UC Investments, the investment arm of the University of California, and is backed by a $2.5 billion initial investment. State Street said the ETF is designed to replicate the total returns of the UC Investments 90/10 Endowment Strategy Index, a 90% equity and 10% fixed income allocation.

The index assigns 90% to large caps within the S&P 500, with the remaining 10% invested in investment-grade short-duration corporate bonds, and ETF Trends noted that UC Investments' top-performing Blue and Gold Endowment Pool helped inspire the index.

UCBG carries a low expense ratio of six basis points, and ETF Trends said the strategy is intended to pair S&P 500 exposure with a mitigating bond component through a lower-risk allocation approach. The launch also gives investors access beyond the University of California community to an institutional endowment-style approach, delivered via an ETF wrapper.

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