UC Investments Backs New State Street Endowment ETF With $2.5 Billion

State Street Investment Management (STT ) on September 2, 2026, launched the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF, backed by a $2.5 billion anchor investment from UC Investments, the investment arm of the University of California. State Street said the commitment makes the fund, ticker UCBG, the largest ever U.S.-listed ETF launch, citing Morningstar and Bloomberg Finance L.P. data covering all currently publicly traded U.S.-listed ETFs, with mutual fund-to-ETF conversions excluded because their assets come from a predecessor fund rather than net new investment.

The fund was developed in collaboration with UC Investments, which also serves as the index provider. UCBG seeks to track the UC Investments 90/10 Endowment Strategy Index, which combines broad U.S. equity exposure with short-duration investment-grade corporate bond exposure. The index allocates 90% of its weight to the S&P 500 Index, representing large-cap U.S. equities, and 10% to the S&P U.S. Investment Grade Corporate Bond 1-3 Year Index, which holds U.S. dollar-denominated investment-grade corporate bonds with maturities between one and three years.

UC Investments and S&P Dow Jones Indices developed the custom index, which State Street said was inspired by UC’s $7.9 billion Blue and Gold Endowment Pool, a long-term public markets strategy. According to the company, the pool has been the best performing product within UC’s $236 billion investment portfolio since its inception seven years ago, with assets measured as of June 30, 2026. The strategy reflects UC’s conviction that low-cost, liquid, diversified public markets exposure can deliver compelling long-term returns while avoiding the complexity and illiquidity of traditional endowment models, the company said.

Index Construction and Fund Terms

The fund’s summary prospectus, dated September 1, 2026, states that the index rebalances quarterly after the close of business on the third Friday of March, June, September, and December to restore the 90% equity and 10% fixed income target weights. As of June 30, 2026, the equity index comprised 503 stocks and the fixed income index held 2,036 securities; a significant portion of the index comprised technology sector companies, the filing noted.

The prospectus lists annual fund operating expenses of 0.06%, with no distribution or service fees. The fund employs a sampling strategy, meaning it may hold a subset of index securities rather than every constituent, and it is non-diversified. UC Investments sponsors the index and determines its composition and relative weightings, while S&P Dow Jones Indices sponsors the two underlying component indexes. SSGA Funds Management, Inc. serves as investment adviser, with portfolio managers Michael Martel, Seamus Quinn, Karl Schneider, Ted Janowsky, David Marchetti, and Michael Brunell.

The fund’s official product page lists an inception date of September 1, 2026, and a listing date of September 2, 2026, on NYSE Arca, with a gross expense ratio of 0.06%, CUSIP 78468R374, and quarterly distributions. Pre-launch seeding data as of September 1, 2026, show a net asset value of $50.00 per share, 200,000 shares outstanding, and $10.00 million in assets, before the anchor investment settled. SSGA Funds Management, Inc. is the investment manager, State Street Global Advisors Funds Management Inc. the administrator, and State Street Global Advisors Funds Distributors, LLC the distributor.

Prior Access Limited to UC Community

State Street said UC’s endowment-style approach was previously available only within the institution’s own portfolio and, through its retirement savings program, directly to employees of its 10 campuses and six medical centers. The company described that program as the nation’s second-largest public defined contribution program, behind only the federal government.

“At UC Investments, we focus on building long term, cost-effective portfolios to support our hundreds of thousands of UC students, faculty, staff, and alumni for generations to come,” said Jagdeep Singh Bachher, the University of California’s Chief Investment Officer. “This record-breaking ETF launch makes our institutional investment philosophy available to a broader community of investors through the transparency, efficiency and accessibility of the ETF structure, while staying true to the principles that have guided our investment approach.”

The launch extends a longstanding relationship between the two organizations. State Street Investment Management currently provides asset management services to UC Investments’ $236 billion portfolio across pension, endowment, and other assets, while State Street Bank and Trust Company provides custody and other investment services. “Our relationship with UC Investments spans more than two decades and has always been driven by innovation,” said Ronald O’Hanley, Chairman and Chief Executive Officer of State Street Corporation, adding that the launch brings an endowment-inspired strategy to a broader range of investors.

Yie-Hsin Hung, President and Chief Executive Officer of State Street Investment Management, said the partnership shows what is possible when a leading asset owner and asset manager work together to turn a successful institutional investment strategy into an accessible solution.

State Street Investment Management reported more than $6 trillion in assets under management as of June 30, 2026, including ETF assets of $2,203.98 billion, a figure the company described as unaudited. UC Investments manages the University of California’s retirement, endowment, working capital, and cash assets.

The company cautioned that the index is not intended to replicate the exact asset allocation of any UC Investments endowment pool, and the fund’s returns may differ from the returns of those pools. The prospectus also discloses large shareholder risk, under which concentrated ownership, including redemptions by a single large shareholder, could adversely affect the fund’s ability to conduct its investment program, alongside new fund, indexing strategy, debt securities, and technology sector risks.