State Street Investment Management Launches Four New S&P 500 Market Sector ETFs
State Street Investment Management has launched four new State Street S&P 500 Market Sector SPDR ETFs, expanding the sector ETF franchise the firm pioneered nearly three decades ago. The new funds are designed to provide cost-effective sector exposures that more closely reflect the composition of market-cap-weighted S&P 500 sector benchmarks.
The new ETFs are the State Street S&P 500 Consumer Discretionary Market Sector SPDR ETF (XLYM), State Street S&P 500 Consumer Staples Market Sector SPDR ETF (XLPM), State Street S&P 500 Energy Market Sector SPDR ETF (XLEM), and State Street S&P 500 Technology Market Sector SPDR ETF (XLKM).
The funds are designed to track market-capitalization-weighted S&P 500 sector indexes that do not cap individual company weights. This structure allows the largest companies within each sector to be represented at their full market-cap weight, providing investors with exposures intended to more closely match the underlying S&P 500 sector benchmarks.
Each ETF primarily invests through a combination of the corresponding State Street Select Sector SPDR ETF, individual stocks represented in its underlying index, and derivatives. The investment process is rules-based and is intended to help each fund track its respective market-cap-weighted sector index. The corresponding existing Select Sector SPDR ETFs are XLY for Consumer Discretionary, XLP for Consumer Staples, XLE for Energy, and XLK for Technology.
State Street said the new products are aimed at benchmark-aware investors, model portfolio builders, and asset allocators that increasingly use sector ETFs as portfolio building blocks. The Market Sector ETFs expand the firm’s lineup alongside its existing State Street Sector ETFs and Sector Premium Income ETFs.
State Street Investment Management launched what it describes as the world’s first sector ETF suite in 1998 and has since built a global sector ETF franchise approaching $400 billion. State Street Sector ETFs and State Street Sector Premium Income ETFs had a combined $393.6 billion in assets under management as of August 31, 2026.
State Street Investment Management manages more than $6 trillion in assets and serves clients in 60 countries. The firm’s broader investment platform spans indexing, ETFs, and other public and private market investment solutions.
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“State Street helped create the sector ETF category nearly three decades ago, and investors have changed considerably in how they use sectors since then. Today, sectors are increasingly used as building blocks in asset allocation and model portfolios. These new ETFs give investors another way to put their views into practice, with exposure designed to more closely reflect the market cap weighting of the S&P 500 sector indexes.”
Anna Paglia, Chief Business Officer At State Street Investment Management