State Street to Liquidate Three SPDR ETFs Holding a Combined $55 Million

State Street Investment Management (STT ) said on August 20, 2026 that it will close and liquidate three of its US-listed ETFs in February 2027, trimming two thematic equity funds from its SPDR Kensho suite and an actively managed municipal bond fund run with Nuveen. The three funds held a combined $54.5 million as of August 20, 2026, according to the manager’s own fund pages: a rounding error against the $2.2 trillion in ETF assets State Street reports across its platform, and an amount small enough to explain why the products are going away.

The funds on the way out are the State Street SPDR S&P Kensho Intelligent Structures ETF (SIMS), the State Street SPDR S&P Kensho Smart Mobility ETF (HAIL), and the State Street Nuveen Municipal Bond ETF (MBND). The announcement attributes the decision to “a review of its ETF offerings.”

The timeline gives holders a six-month runway. The final day for creations and redemptions in each fund will be February 17, 2027. Trading will be suspended at the market open on February 18, 2027 — on NYSE Arca for SIMS and HAIL, and on Cboe BZX for MBND. Each fund will then cease operations, sell its assets, and prepare to distribute proceeds to shareholders of record on or about February 23, 2027, with cash scheduled to reach remaining holders on or about February 24, 2027.

What Each Fund Holds and What It Is Worth

SIMS tracks the S&P Kensho Intelligent Infrastructure Index, a 53-stock basket of companies tied to smart buildings, power grids, transport and water infrastructure. It charges 0.45% and held $8.34 million as of August 20, 2026, with top positions including Tetra Tech (TTEK ) at 3.61% and Alarm.com (ALRM ) at 3.31%. Its average daily exchange volume has been thin. One share changed hands on its primary exchange on the last session before the announcement.

HAIL tracks the S&P Kensho Smart Transportation Index, 87 names spanning electric and autonomous vehicles, drones and transport optimization; its largest holding, Via Transportation (VIA ), sat at 2.70% of the portfolio. It also charges 0.45% and held $19.16 million. Both Kensho funds listed on December 27, 2017, giving them nearly a decade to gather assets that never arrived.

MBND is the different case — an actively managed fund, sub-advised by Nuveen Asset Management, holding 73 municipal bonds with an average coupon of 4.55% and an option-adjusted duration of 5.44 years. It charges 0.40% and held $27.01 million. State Street launched it on February 4, 2021 as its first actively managed municipal bond ETF, pairing Nuveen’s credit research with the SPDR muni suite; the fund sought tax-exempt income with a value-oriented security-selection approach.

How an ETF Liquidation Pays Out

The announcement lays out a fixed sequence, beginning with the final creation and redemption day on February 17, 2027. Until February 17, 2027, the funds operate normally: authorized participants can create and redeem shares, and investors can buy or sell on exchange. After creations and redemptions stop, exchange trading runs for one more session, then halts for good. Anyone holding shares on the record date of February 23, 2027 receives a cash distribution equal to their pro-rata share of the fund’s net assets, expected around February 24, 2027.

The funds’ own pages carry the standard reminder that shares may trade above or below net asset value, and that brokerage commissions apply to sales made before the halt.

The Second Pruning of the Lineup in Three Months

This is State Street’s second ETF closure announcement of the summer. On May 28, 2026, the manager said it would close the State Street DoubleLine Emerging Markets Fixed Income ETF, which stopped trading on July 22, 2026 and paid out around July 28, 2026. The four closures share a profile: sub-scale funds with partner brands (DoubleLine, Nuveen, the Kensho indices) that never built the asset base to justify their slot on the shelf.

The closure also halves the SPDR Kensho “New Economies” family. The four surviving funds (the S&P Kensho Future Security, Clean Power, Final Frontiers and New Economies Composite ETFs) remain open, and the announcement’s licensing disclosure confirms the index relationship with S&P Dow Jones Indices continues for those products.

The three funds held a combined $54.5 million against expense ratios of 0.40% to 0.45%. At a 0.45% expense ratio, SIMS’s $8.34 million generates roughly $37,500 a year in gross fees. The next dated step for shareholders is the last creation and redemption day on February 17, 2027.