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$46.83 -9.86 (-17.39%)
10/15/2008 4:02 PM

State Street Corp (STT)

CAPS Rating:
*

A financial holding company which provides a range of investment management strategies, specialized investment management advisory services and other financial services for corporations, public funds, and other sophisticated investors.

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Avatar COOLSTOCK (< 20) Submitted: 7/15/08 3:21 PM : Outperform Start Price: $61.50 STT Score: 4.76

This company primarily provides index products. I particularly like their ETF business. With 401k plans allowing ETFs, there is going to be a ton of money being put into ETFs. This means a massive increase in creation and redemption fees, trading fees, as well as management fees.





ETF's is an extremely low overhead business. You essentially partner with an index provider that provides you the basket, and you determine the exact ratios to replicate the index. Split the revenues with the index provider which does most of the heavy lifting, you make money from creation/redemptions/custody fees. Awesome business

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