State Street unveils active ETFs in Australia

State Street Investment Management has launched two actively managed exchange-traded funds (ETFs) with Blackstone Credit and Insurance in Australia. These are the first actively managed ETFs launched by either firm in the country. The move responds to growing demand for active fixed income strategies in the local market.

Two new ETFs list on the ASX next week

The funds—State Street Blackstone Senior Loan Active ETF (ASX: SBSL) and State Street Blackstone High Income Active ETF (ASX: SBHI)—will begin trading on the Australian Securities Exchange on August 7. Both are feeder funds that invest in their U.S.-domiciled counterparts: State Street Blackstone Senior Loan ETF (NYSE: SRLN) and State Street Blackstone High Income ETF (CBOE: HYBL).

SRLN, the largest actively managed bank loan ETF, holds $5.2 billion in assets under management. HYBL manages $569 million. Blackstone acts as sub-advisor for both U.S. funds, while State Street handles governance and distribution of the Australian versions.

Flora Herries, State Street’s head of APAC product, stated the new ETFs provide local investors access to the $2.87 trillion U.S. senior loan market. “With bank hybrids being phased out, investors are searching for alternative high-yield options,” she said. “These funds offer exposure to higher-yielding corporate bonds, delivering attractive income opportunities.”

Active ETFs gain traction amid fixed income demand

State Street, which introduced the first ETFs in Australia 25 years ago, views active strategies as the next stage of market development. Meaghan Victor, head of intermediary client coverage in Asia Pacific, described the launch as a milestone. “We’re delivering institutional-grade solutions to all investors at a time when demand for active fixed income is rising,” she said.

Victor added State Street sees active ETFs still in the early stages of their evolution, which will play an increasingly important role in portfolio construction.

Dan Leiter, Blackstone’s global head of liquid credit strategies, noted the partnership reflects the firm’s expansion in Asia Pacific. “Australia is a key market for us, with strong ties to our investment history,” he said. “This launch leverages our expertise from a $125 billion global liquid credit platform.”

The feeder structure allows Australian investors to access U.S. credit markets without dealing with offshore regulations. State Street manages local compliance, tax reporting, and currency hedging, making the process simpler for retail and institutional buyers.

The funds provide access to a large, liquid market with professional oversight.