State Street Launches Actively Managed Prime Money Market ETF
Event summary
- State Street Investment Management launched the State Street Prime Money Market ETF (MMK), an actively managed ETF for cash management.
- The ETF is priced at 18 bps, one of the lowest-cost active prime money market ETF strategies in the U.S. as of February 2026.
- State Street's cash team manages $599.55 billion in assets as of December 31, 2025.
The big picture
State Street's launch of an actively managed prime money market ETF reflects a broader industry trend towards offering more flexible and cost-effective cash management solutions. With $599.55 billion in assets under management by its cash team, State Street is leveraging its scale to compete in the growing ETF market, particularly as investors seek alternatives to traditional money market funds.
What we're watching
- Competitive Pricing
- Whether State Street can sustain its low-cost positioning amid potential competitive responses from other asset managers.
- Market Adoption
- The pace at which institutional and retail investors adopt the new ETF for cash management needs.
- Regulatory Compliance
- How the actively managed structure of MMK will navigate regulatory scrutiny, particularly around liquidity and risk management.