The choice between Vanguard S&P 500 Growth ETF (VOOG -0.58%) and State Street SPDR S&P 600 Small Cap Growth ETF (SLYG -0.19%) hinges on whether an investor prefers large-cap stability and tech dominance or the potential higher volatility of small-cap growth.
These two funds target opposite ends of the market capitalization spectrum. While both prioritize growth factors, they operate in different universes: one captures the titan companies of the U.S. economy, and the other focuses on smaller firms with high expansion potential. This analysis compares their costs, risk profiles, and portfolios.
Snapshot (cost & size)MetricSLYGVOOGIssuerSPDRVanguardShare price$114.58 (as of 2026-07-23)$80.29 (as of 2026-07-23)Expense ratio0.15%0.07%1-yr return (as of 2026-07-23)26.2%18.8%Dividend yield0.7%0.4%Beta1.041.17AUM$5.1B$26.4BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard S&P 500 Growth ETF is the more affordable option with an expense ratio of 0.07%, which is less than half of the 0.15% charged by the State Street fund. While both offer modest income, the yield gap reflects their primary focus on capital appreciation.
Performance & risk comparisonMetricSLYGVOOGMax drawdown (5 yr)(29.2%)(32.7%)Growth of $1,000 over 5 years (total return)$1,396$1,816What's insideThe Vanguard S&P 500 Growth ETF holds 212 stocks and is heavily tilted toward technology at 52%, communication services at 16%, and consumer cyclical at 9%. Its largest positions include NVIDIA Corp (NVDA -1.01%) at 13.64%, Microsoft Corp (MSFT +0.02%) at 7.80%, and Apple Inc (AAPL +3.52%) at 5.98%. The fund was launched in 2010. It has paid $0.37 per share over the trailing 12 months, which, at its recent ~$80.29 share price, yields 0.4%.
In contrast, the State Street SPDR S&P 600 Small Cap Growth ETF targets smaller firms with top holdings including Viasat Inc (VSAT -3.46%) at 1.15%, Corcept Therapeutics Inc (CORT -1.46%) at 1.06%, and Alkermes Plc (ALKS -0.15%) at 1.01%. This fund holds 350 positions, with a more balanced sector mix: industrials at 19%, technology at 18%, and healthcare at 17%. It was launched in 2000. It has paid $0.76 per share over the trailing 12 months, which, at its recent ~$114.58 share price, yields 0.7%.
For more guidance on ETF investing, check out the full guide at this link.
Which is the better buyThe Vanguard S&P 500 Growth ETF (VOOG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) are both growth-oriented exchange-traded funds (ETFs), they employ very different strategies to deliver returns for investors. Let’s look at each fund individually.
First, there’s VOOG. This fund is loaded with tech megacap stocks. Indeed, just three stocks — Apple, Microsoft, and Nvidia — account for about 27% of the fund’s holdings. As for sectors, technology (67% of total holdings) is the largest, followed by financials (9%) and consumer durables (2%). Overall, the fund is almost entirely focused on the U.S. stock market, with more than 98% of all holdings in U.S. stocks. As for performance, VOOG has generated a total return of 385% over the last 10 years, with a compound annual growth rate (CAGR) of 17.1%. Both figures are outstanding and surpass the benchmark S&P 500, which has delivered a total return of 300%, equating to a CAGR of 14.9% over the same period. As for fees, VOOG has a low expense ratio of 0.07%.
Then, there’s SLYG. Unlike its counterpart, SLYG focuses on the small and mid cap growth sector. Rather than targeting tech giants, SLY invests in much smaller companies with market caps under $10 billion. For context, Microsoft has a market cap of $2.8 trillion, meaning SLYG’s holdings are very different from those in the VOOG portfolio. For example, SLYG's top sector holdings are technology (22%), followed by financials (21%) and manufacturing (9%). Turning to performance, the fund has delivered a total return of 182% over the last 10 years, with a CAGR of 10.9%. While this isn’t terrible by any means, the fund has underperformed the benchmark, the S&P 500, and fallen well short of VOOG’s returns. SLYG also has a slightly higher expense ratio at 0.15%.
In summary, these two funds are both acceptable choices for investors seeking exposure to the growth sector of the stock market. However, VOOG beats SLYG on both performance and fees. Yet, for investors seeking diversification away from the tech megacaps, SLYG offers a viable alternative.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at State Street Corporation (STT - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. State Street Corporation currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if STT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For STT, shares are up 1.27% over the past week while the Zacks Banks - Major Regional industry is up 1.31% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.69% compares favorably with the industry's 4.93% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of State Street Corporation have increased 22.92% over the past quarter, and have gained 67.41% in the last year. On the other hand, the S&P 500 has only moved 5.37% and 20.16%, respectively.
Investors should also pay attention to STT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STT is currently averaging 2,512,177 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with STT.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STT's consensus estimate, increasing from $12.35 to $13.68 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that STT is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep State Street Corporation on your short list.
Investors seeking financial exposure can choose between the broad-market State Street Financial Select Sector SPDR ETF (XLF -0.70%), which offers low-cost diversified access to the sector, or the more targeted State Street SPDR S&P Bank ETF (KBE -1.54%), for a more concentrated bet on the banking industry.
Both funds are managed by State Street (STT -0.20%), but they serve different roles in a portfolio -- XLF tracks the heavyweights of the S&P 500's financial sector, while KBE uses a modified equal-weighted strategy to provide exposure to banks across the market cap spectrum.
Snapshot (cost & size)MetricKBEXLFIssuerState StreetState StreetExpense ratio0.35%0.08%1-year return (as of July 21, 2026)22.03%8.75%Dividend yield2.15%1.51%Beta1.120.75AUM$1.5 billion$51.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
XLF is the cheaper option, with a 0.08% expense ratio compared to KBE’s 0.35%. Income-focused investors may prefer KBE, which carries a dividend yield of 2.15% versus XLF’s 1.40%.
Performance & risk comparisonMetricKBEXLFMax drawdown (5 yr)(45.26%)(25.82%)Growth of $1,000 over 5 years (total return)$1,639$1,688What's insideLaunched in 1998, XLF holds 76 positions and provides broad exposure across financial services. Its largest positions include Berkshire Hathaway (BRKB +0.01%) at 12.1%, JPMorgan Chase & Co. (JPM -0.06%) at 11.5%, and Visa (V -0.91%) at 7.5%.
KBE holds 103 positions and focuses specifically on banking and its associated sub-industries, including asset management and mortgage finance. Top holdings include Rocket Companies (RKT -5.36%) at 1.2%, Nicolet Bankshares (NIC -0.84%) at 1.1%, and The Bancorp (TBBK -2.63%) at 1.2%. KBE launched in 2005.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThe bigger question for investors isn't which of these funds is “better,” but how much banking-specific risk they actually want in their portfolio.
XLF's diversification across insurance, payments, and asset management -- not just banks -- has historically made it a smoother way to own the financial sector, and its rock-bottom 0.08% expense ratio makes it an easy fund to own for buy-and-hold investors.
KBE, by contrast, is a more concentrated, higher-conviction bet on banks themselves, and its equal-weighted approach means smaller regional and mid-cap banks can move the needle just as much as the mega-cap giants. That’s more potential upside -- and downside -- that investors don't get with most cap-weighted financial funds.
That trade-off shows up clearly in the numbers: KBE's 22% one-year return far outpaces XLF’s roughly 9% gain. But KBE’s 45% maximum drawdown over the last five years is a reminder that concentrated bank exposure can swing hard in both directions, especially during periods of rate volatility or credit stress. Neither outcome is unusual -- banking is historically one of the more cyclical corners of the financial sector, prone to bigger rallies and bigger pullbacks than diversified financial ETFs.
For investors who want steady, low-cost exposure to the broader financial sector, XLF is the more conservative choice. For those who have a specific view on banks -- say, expecting margins to improve as rates shift, or wanting to bet on a recovery in regional lenders -- KBE offers a more targeted way to invest in that view, provided they can stomach the extra volatility that comes with it.
JPMorgan Chase is an advertising partner of Motley Fool Money. Andy Gould has positions in Berkshire Hathaway, Rocket Companies, and Visa. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Nicolet Bankshares, Rocket Companies, and Visa. The Motley Fool has a disclosure policy.
Investors might want to bet on State Street Corporation (STT - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For State Street Corporation, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $3.56 per share for the current quarter represents a change of +28.1% from the number reported a year ago.
Over the last 30 days, five estimates have moved higher for State Street compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 8.47%.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $13.35 per share represents a change of +29.6% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for State Street versus no negative revisions. This has pushed the consensus estimate 8.13% higher.
Favorable Zacks RankThe promising estimate revisions have helped State Street earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for State Street have attracted decent investments and pushed the stock 8.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Boston Common Asset Management LLC cut its holdings in State Street Corporation (NYSE:STT – Free Report) by 15.7% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 30,757 shares of the asset manager’s stock after selling 5,712 shares during the period. Boston Common Asset Management LLC’s holdings in State Street were worth $3,893,000 at the end of the most recent reporting period.
A number of other large investors also recently made changes to their positions in the business. Nordea Investment Management AB grew its holdings in State Street by 15.4% in the 4th quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager’s stock valued at $367,041,000 after buying an additional 377,568 shares during the period. Clean Yield Group lifted its holdings in shares of State Street by 8,247.4% during the 4th quarter. Clean Yield Group now owns 19,199 shares of the asset manager’s stock worth $2,477,000 after acquiring an additional 18,969 shares during the period. IFM Investors Pty Ltd boosted its position in shares of State Street by 9.7% in the first quarter. IFM Investors Pty Ltd now owns 84,534 shares of the asset manager’s stock worth $10,699,000 after acquiring an additional 7,469 shares during the last quarter. Concurrent Investment Advisors LLC acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,959,000. Finally, Heritage Family Offices LLP acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,220,000. Hedge funds and other institutional investors own 87.44% of the company’s stock.
State Street News Summary Here are the key news stories impacting State Street this week:
Positive Sentiment: State Street delivered a Q2 earnings beat, reporting $3.65 EPS on $4.05 billion in revenue versus expectations of $3.34 EPS and $3.88 billion in sales, supported by higher fee income, stronger net interest income, and no credit-loss provision. State Street Corporation (NYSE: STT) Reports Second-Quarter 2026 Financial Results Positive Sentiment: Management’s update showed strong operating momentum, with assets under custody and management reaching record levels and revenue growth accelerating sharply year over year, reinforcing confidence in the company’s earnings power. State Street’s quarterly profit jumps 56% on strong fee income Positive Sentiment: Several analysts turned more constructive after the results, including KBW and Wells Fargo, both lifting their price targets to $215, while RBC raised its target to $196, signaling expectations for additional upside. These Analysts Raise Their Forecasts On State Street Following Upbeat Q2 Results Neutral Sentiment: Truist reaffirmed its hold rating but still increased its target to $191, suggesting the earnings strength improved valuation expectations even without a bullish rating change. Benzinga analyst update on State Street Neutral Sentiment: Commentary on digital custody, ETF pricing pressure, and macro-driven operating leverage adds context, but the immediate stock move appears to be driven mainly by the earnings beat and analyst upgrades. State Street Q2: Macro Conditions Continue To Drive Healthy Operating Leverage Analysts Set New Price Targets STT has been the subject of several research analyst reports. Evercore set a $186.00 price target on shares of State Street and gave the stock an “outperform” rating in a research report on Monday, July 6th. Wells Fargo & Company boosted their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday. Argus upped their price objective on State Street from $140.00 to $168.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Truist Financial reaffirmed a “hold” rating and issued a $191.00 target price (up from $176.00) on shares of State Street in a research report on Friday. Finally, Seaport Research Partners reiterated a “buy” rating and issued a $170.00 target price on shares of State Street in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, State Street presently has a consensus rating of “Moderate Buy” and a consensus price target of $183.84.
Get Our Latest Research Report on State Street
State Street Trading Down 0.1% Shares of STT stock opened at $182.27 on Monday. The company has a quick ratio of 0.57, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. State Street Corporation has a fifty-two week low of $104.64 and a fifty-two week high of $192.51. The firm’s 50 day moving average price is $165.83 and its two-hundred day moving average price is $144.18. The stock has a market cap of $50.45 billion, a price-to-earnings ratio of 16.07, a price-to-earnings-growth ratio of 0.90 and a beta of 1.42.
State Street (NYSE:STT – Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the prior year, the business earned $2.04 earnings per share. The business’s quarterly revenue was up 23.3% compared to the same quarter last year. On average, analysts anticipate that State Street Corporation will post 13.35 EPS for the current year.
State Street Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be issued a $0.92 dividend. The ex-dividend date is Thursday, October 1st. This represents a $3.68 annualized dividend and a yield of 2.0%. This is an increase from State Street’s previous quarterly dividend of $0.84. State Street’s payout ratio is currently 29.63%.
Insider Buying and Selling In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total transaction of $2,260,808.55. Following the transaction, the chief executive officer owned 255,512 shares in the company, valued at $39,693,789.20. The trade was a 5.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total value of $243,210.00. Following the completion of the sale, the executive vice president directly owned 41,827 shares of the company’s stock, valued at $6,781,829.78. The trade was a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,876 shares of company stock valued at $5,866,583 in the last 90 days. 0.27% of the stock is currently owned by company insiders.
About State Street (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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Compass Pathways (NASDAQ:CMPS)'s COMP360 treatment model may face fewer regulatory hurdles as new Phase II analysis distinguishes the company’s psychological support approach from psychotherapy, Jefferies analysts have highlighted.
In a note reviewing a post-hoc analysis of Compass Pathways (NASDAQ:CMPS)’ completed Phase II open-label trial of COMP360 in post-traumatic stress disorder (PTSD), Jefferies wrote that the study provided further detail on how the company’s treatment model separates monitoring and support during dosing sessions from traditional talk therapy.
The analysis examined audio recordings from 22 participants during COMP360 administration sessions, measuring interactions between patients and support providers. Jefferies highlighted that 78% of the more than six-hour dosing sessions were spent in silence, with providers largely remaining outside patients’ awareness while remaining available if needed.
The analysts wrote that the findings suggest the psychedelic experience was primarily inward-focused, with support staff serving a safety-monitoring role rather than actively engaging in psychotherapy. During the post-treatment integration period, participants spoke significantly more than providers, indicating that the sessions allowed patients to reflect on their experiences.
Although the analysis was conducted in a PTSD trial rather than Compass Pathways’ treatment-resistant depression (TRD) program, Jefferies noted that the company has applied a similar psychological support model across its clinical programs.
The report comes ahead of a September 2026 FDA hearing on psychedelics and Compass Pathways’ potential regulatory review of COMP360 for TRD. Jefferies estimated it has 75% to 85% confidence that the FDA will approve COMP360 for TRD by the end of 2026, citing positive results from three Phase IIb/III datasets, the therapy’s FDA Breakthrough Therapy Designation and the company’s receipt of an FDA CNPV voucher.
Jefferies also pointed to broader industry developments supporting the potential adoption of psychedelic treatments, including increasing interest from pharmaceutical companies and growing infrastructure for supervised psychedelic therapies. The analysts highlighted Spravato’s commercial performance as an indicator that patient demand and treatment-center capacity may support future adoption of COMP360.
The analysts wrote that the FDA’s recent psychedelic guidance further supports the distinction between psychological support and psychotherapy, noting that regulators have focused on evaluating whether psychotherapy contributes to treatment effects while psychological support is intended primarily to maintain patient safety.
Jefferies also noted that Compass Pathways’ trial design differs from the approach taken by Lykos Therapeutics’ MDMA-assisted therapy application, which was rejected by the FDA in 2024 for PTSD. The analysts wrote that the FDA had raised concerns around Lykos’ use of psychotherapy alongside treatment, among other issues.
The analysts maintained that Compass Pathways could eventually achieve peak sales of more than $1.5 billion, which they estimated could support a valuation of $3 billion to $4.5 billion based on a 2-3x multiple.
Shares of Compass Pathways are up about 80% so far this year, trading hands at about $12.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
State Street Corp. (NYSE:STT) on Thursday reported stronger-than-expected second-quarter results on Thursday.
The company posted earnings of $3.65 per share, topping analysts’ estimates of $3.29. Revenue increased 17% year over year (Y/Y) to $4.05 billion, exceeding the Street’s expectation of $3.88 billion.
“Following the release of the Federal Reserve’s stress test results, we recently declared a 10% per share increase to our third quarter common stock dividend, reflecting the resilience of our franchise and our continued focus on returning capital to shareholders,” said CEO Ron O’Hanley.
State Street shares gained 0.9% to $187.23 in pre-market trading.
These analysts made changes to their price targets on State Street following earnings announcement.
Barclays analyst Jason Goldberg maintained the stock with an Equal-Weight rating and raised the price target from $165 to $200. RBC Capital analyst Gerard Cassidy maintained the stock with a Sector Perform and raised the price target from $155 to $196. Considering buying STT stock? Here’s what analysts think:
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4:15pm: Semiconductor selloff Wall Street ended lower on Thursday, with semiconductor stocks leading the decline as investors took a step back from the AI trade despite another round of solid corporate earnings.
The Nasdaq bore the brunt of the selling, falling 387 points, or 1.5%, to 25,882 as chipmakers came under heavy pressure. The S&P 500 lost 39 points, or 0.5%, to close at 7,534, while the Dow proved more resilient, slipping 106 points, or 0.2%, to 52,553.
The biggest drag came from the semiconductor sector, where the Philadelphia Semiconductor Index tumbled as investors questioned whether massive spending on AI infrastructure will continue delivering the strong returns that have fueled the industry's rally. Major names including Nvidia, Micron Technology, and Broadcom all finished sharply lower, weighing heavily on the broader market.
Investors also looked ahead to Netflix's quarterly earnings, due after the closing bell, with the streaming giant expected to offer another glimpse into consumer demand and the health of the technology sector.
3:45pm: Proactive news headlines Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) retained its Outperform rating from Noble Capital Markets, which said the company is well-positioned for multiple development and exploration catalysts in the second half of 2026. Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) maintained its Outperform rating from Noble Capital Markets after successfully converting lithium carbonate from its Angel Island project into high-purity lithium metal and battery cells. AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) agreed to be acquired by Eli Lilly in a deal worth up to approximately $3.8 billion, strengthening Lilly's neuroscience pipeline with investigational mental health therapies. American Resources Corp (NASDAQ:AREC) said its majority-owned subsidiary Electrified Materials Corporation completed a private placement that raised approximately $9.5 million in gross proceeds. Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) finalized plans for a 40-kilometre 2D seismic survey on its M47c,d oil block in Türkiye, with exploration work scheduled to begin in late summer 2026. Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) reported preliminary testing from its Kavango West 1X discovery well in Namibia, successfully producing hydrocarbons to the surface and advancing testing of additional formations. Montero Mining and Exploration Ltd (TSX-V:MON, OTC:MXTRF) completed the first drill hole of its 2026 exploration program at the Elvira gold project in Chile, targeting high-priority mineralization identified through geological analysis and AI-assisted data integration. 374Water Inc (NASDAQ:SCWO, FRA:8LL) signed a memorandum of understanding with Arcadis to jointly pursue federal and commercial contracts for PFAS waste destruction using its AirSCWO technology. Medicus Pharma (NASDAQ:MDCX) received US FDA feedback and central Institutional Review Board approval for its optimized Phase 2 study of Teverelix, reducing planned enrollment while advancing development of the treatment for acute urinary retention. Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) maintained its full-year production and cost guidance after second-quarter gold production from its Segilola mine in Nigeria kept the company on track to meet its annual targets. 2:45pm: Market movers AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) agreed to be acquired by Eli Lilly and Co (NYSE:LLY) in a deal worth up to approximately $3.8 billion, strengthening Lilly's neuroscience pipeline with investigational mental health therapies. Cintas Corporation (NASDAQ:CTAS) was upgraded to Buy by Bank of America, which raised its price target after the company's stronger-than-expected fourth-quarter results and upbeat fiscal 2027 outlook reinforced confidence in its earnings growth. Abbott Laboratories (NYSE:ABT) shares surged after the healthcare company reported second-quarter earnings that beat expectations and raised its full-year adjusted earnings guidance. GE Aerospace reported better-than-expected second-quarter earnings and revenue, although its shares declined as investors focused on high expectations and moderating order growth. UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) shares rose in after-hours trading after the health insurer delivered stronger-than-expected second-quarter earnings and increased its full-year adjusted earnings outlook. Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported a 77% increase in second-quarter profit and raised its capital spending forecast as strong demand for AI chips continued to drive growth. Medicus Pharma (NASDAQ:MDCX) received US FDA feedback and central Institutional Review Board approval for an optimized Phase 2 study of Teverelix, reducing the planned enrollment while advancing development of the treatment for acute urinary retention. 1:15pm: Netflix due up Netflix Inc (NASDAQ:NFLX, XETRA:NFC) (Netflix Inc (NASDAQ:NFLX, XETRA:NFC), Netflix Inc (NASDAQ:NFLX, XETRA:NFC)) reports second quarter earnings tonight, and two major brokerages are sticking with their bullish calls even as the stock has struggled this year.
Shares were little changed Thursday at $73.50, but that stability masks a rough 2026 for Netflix investors: the stock has fallen more than 20% year-to-date.
Jefferies reiterated its Buy rating and $110 price target, while Bank of America kept its own Buy rating and $125 price objective. Both firms see the pullback as a buying opportunity rather than a red flag, even as they acknowledge the market's patience is being tested.
Jefferies doesn't expect a meaningful upside surprise in second quarter or full-year revenue guidance. It's forecasting constant-currency revenue growth of 12% year-over-year for both the second and third quarters, in line with Wall Street. The firm also doesn't expect Netflix to lift its full-year revenue outlook this quarter, citing soft third-party subscription data.
Bank of America is looking for largely in-line financial results, with investors more focused on the company's second-half outlook, engagement trends, and any commentary on acquisition appetite and broader strategic priorities.
11:50am: AI stocks out of favor Investors are still favoring stocks with little direct exposure to AI, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
“Right now, not being so dependent on chip stocks is a good thing. The rotation in markets has seen money desert chip and AI stocks, and flow to areas where these are either less prominent or non-existent,” Beauchamp wrote.
“(T)he Dow and Russell 2000 continue to show greater resilience than the techy Nasdaq & S&P 500. This is all healthy market action, but is little comfort to latecomers to the tech rally, who were assuming that the euphoria for the sector would continue.”
10:55am: Retail sales rise US retail sales rose 0.2% in June from the previous month, reflecting lower gasoline prices while underlying consumer spending remained resilient.
Online retailers and auto dealers led June retail sales gains with 1.9% increases, while a sharp 5.3% drop in gasoline station sales—along with declines in clothing, grocery, and health and personal care stores—weighed on the overall results.
Bill Adams, chief US economist at Fifth Third Commercial Bank, said the softer headline growth was "actually good news," as it reflected falling gas prices rather than weakening demand.
Excluding gas stations, retail sales increased a robust 0.7% in June, while core retail sales (which exclude food services, gas stations and autos) rose 0.4%. Control group sales, which feed directly into GDP calculations, advanced 0.5%.
Adams also noted that upward revisions to April and May retail sales suggest stronger consumer spending than previously estimated, supporting expectations for an upgrade to second-quarter US GDP growth estimates.
10am: Uneven start There was another uneven start for Wall Street on Thursday with stocks searching for direction.
The Dow Jones started 0.2% higher, before slipping to flat, while the Nasdaq dropped over 1% initially before cutting this to an 0.8% deficit. The S&P 500 has slipped 0.3%.
Healthcare stocks led the gains after upbeat earnings, with Abbott jumping 11.8% to top the S&P leaderboard and insurer UnitedHealth rising 8.8%, making it the Dow's best performer.
Technology stocks remain under pressure, with SanDisk again the biggest faller on the Nasdaq 100, down 9.4%, followed by memory peers Seagate and Western Digital, both down around 7%, then AI chipmakers including Arm, Marvell, Micron, Qualcomm, Intel, Broadcom and Nvidia also traded lower.
8.05am: Wall Street futures mixed, Lilly dips toe in psychedelics with Atai deal Wall Street looked set for a mixed open Thursday with further yo-yoing in technology stocks amidst a fresh batch of corporate earnings.
Futures pointed to the Dow Jones opening 0.2%, while the S&P 500 was called down 0.2% and the Nasdaq looked set to bear the brunt of the selling, with futures off 0.8% as semiconductor stocks see pressure.
Oil prices were little changed, with West Texas Intermediate trading just below $80 a barrel, despite further escalation in the Middle East.
Iran's military said it had launched missiles and drones at US military positions in Kuwait, Bahrain and Jordan in retaliation for an earlier US strike, while Reuters reported Tehran had instructed Yemen's Houthi movement to prepare to close the Bab el-Mandeb Strait if Washington attacks Iran's power infrastructure, raising the prospect of disruption to a second key global shipping route.
The three major US indexes all finished higher on Wednesday after softer-than-expected producer price inflation reinforced expectations that the Federal Reserve will leave interest rates unchanged later this month.
The Dow rose 150 points, or 0.3%, to 53,141.48, the S&P climbed 0.4% to 7,614.75, and the Nasdaq Composite added 0.6% to close at 25,654.64.
Weakness in Asian semiconductor names seemed to spill into US futures, as markets were unimpressed with Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) beating expectations with a 77% jump in quarterly profit and upbeat guidance, citing "extremely robust" demand for AI chips. TSMC shares fell about 5% in US premarket trading though.
That follows a similar negative reaction to strong results from Dutch chip equipment maker ASML, highlighting investors' increasingly demanding expectations for AI-linked companies.
Before attention turns to Netflix Inc (NASDAQ:NFLX, XETRA:NFC) after the closing bell, there are a swathe of life science updates ahead of the open.
UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) rose 6% in premarket trading after the health insurer beat second-quarter earnings expectations and raised its full-year guidance, helped by stronger operational performance despite membership headwinds.
Abbott Laboratories (NYSE:ABT) gained 3.3% as investors welcomed better-than-expected quarterly results and an upbeat outlook.
Merck & Co Inc (NYSE:MRK, XETRA:6MK) added over 1% after the FDA approved its first-in-class cholesterol pill Liprendra, while second-quarter sales edged ahead of forecasts and the drugmaker reiterated its growth outlook.
AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) surged almost 34% after agreeing to a $2.8 billion takeover by Eli Lilly, with the deal including additional milestone payments that could take the total value to $3.8 billion.
Prologis Inc (NYSE:PLD) was little moved after the logistics property group beat forecasts on both funds from operations and revenue in the second quarter, signalling resilient demand for warehouse space.
From the financials, State Street Corp (NYSE:STT) climbed after the custodian bank topped expectations for earnings, revenue, net interest income and assets under management in the second quarter.
State Street Corporation (STT) Q2 2026 Earnings Call July 16, 2026 11:00 AM EDT
Company Participants
Elizabeth Lynn - Executive VP & Global Head of Investor Relations
Ronald O’Hanley - CEO, President & Chairman
John Woods - Executive VP & CFO
Conference Call Participants
Alexander Blostein - Goldman Sachs Group, Inc., Research Division
Glenn Schorr - Evercore ISI Institutional Equities, Research Division
Michael Mayo - Wells Fargo Securities, LLC, Research Division
Kenneth Usdin - Bernstein Autonomous LLP
David Smith - Truist Securities, Inc., Research Division
James Mitchell - Seaport Research Partners
Ebrahim Poonawala - BofA Securities, Research Division
Manan Gosalia - Morgan Stanley, Research Division
Brennan Hawken - BMO Capital Markets Equity Research
Steven Chubak - Wolfe Research, LLC
Vivek Juneja - JPMorgan Chase & Co, Research Division
Gerard Cassidy - RBC Capital Markets, Research Division
Presentation
Operator
Good morning, and welcome to State Street Corporation's Second Quarter 2026 Earnings Conference Call and Webcast. Today's call will be hosted by Elizabeth Lynn, Head of Investor Relations at State Street. [Operator Instructions]
Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in part or in whole without the express written authorization from State Street Corporation. The only authorized broadcast of this call will be on the State Street website.
Now I would like to hand the call over to Elizabeth Lynn.
Elizabeth Lynn
Executive VP & Global Head of Investor Relations
Good morning, and thank you all for joining us. On today's call, our CEO, Ron O'Hanley, and our CFO, John Woods, will review our second quarter 2026 results and provide an update on our medium-term financial outlook. Both are included in our earnings presentation, which is available in the Investor Relations section of our website at investors.statestreet.com. Following
The State Street SPDR S&P Aerospace & Defense ETF (XAR 2.73%) provides more affordable access to the defense and aircraft manufacturing industry, whereas the U.S. Global Jets ETF (JETS +0.00%) focuses specifically on global airline operators.
Investors looking to gain exposure to the aviation sector may find these two funds offer very different risk-return profiles. While one fund focuses on the cyclical nature of commercial travel, the other aligns with broader industrial manufacturing and national security spending.
Snapshot (cost & size)MetricJETSXARIssuerU.S. GlobalState StreetShare price$31.25 (as of 2026-07-15)$266.32 (as of 2026-07-15)Expense ratio0.60%0.35%1-yr return (as of 2026-07-15)27.20%24.50%Dividend yield0.70%0.30%Beta1.181.00AUM$851.4 million$6.0 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is the more affordable option, with an expense ratio of 0.35% compared to the 0.60% charged by the U.S. Global fund. In terms of income, the U.S. Global ETF provides a higher trailing distribution payout.
Performance & risk comparisonMetricJETSXARMax drawdown (5 yr)(40.40%)(28.30%)Growth of $1,000 over 5 years (total return)$1,415$2,190What's insideThe State Street SPDR S&P Aerospace & Defense ETF focuses on industrials at 98% and technology at 2%. It holds 47 positions, and its largest positions include Axon Enterprise (AXON +0.05%) at 3.35%, VSE (VSEC 3.03%) at 3.30%, and Hexcel (HXL 1.01%) at 3.05%. The fund was launched in 2011. The State Street SPDR S&P Aerospace & Defense ETF has paid $0.81 per share over the trailing 12 months, which on its recent ~$266.32 share price works out to a 0.30% yield.
The U.S. Global Jets ETF targets industrials at 89%, consumer cyclical at 8%, and technology at 3%. It holds 45 positions, and its top holdings include Southwest Airlines (LUV +0.40%) at 10.61%, American Airlines Group (AAL 0.19%) at 10.57%, and United Airlines (UAL 1.79%) at 10.56%. The fund was launched in 2015. The U.S. Global Jets ETF has paid $0.23 per share over the trailing 12 months, which on its recent ~$31.25 share price works out to a 0.70% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsFor investors seeking exposure to the aviation industry, the State Street SPDR S&P Aerospace & Defense ETF (XAR) and U.S. Global Jets ETF (JETS) provide an efficient way to do so. Which to choose depends on whether you prefer XAR’s equal-weight approach to the aerospace and defense sector, or JETS’ focus on airlines using a tiered weighting methodology.
JETS represents a pure-play bet on the travel industry and commercial aviation. The fund allocates its portfolio holdings into tiers with the top four U.S. airlines each receiving 10% weighting, giving them an outsized impact on the ETF’s performance. The travel sector is on the upswing from pandemic-era struggles, making JETS a compelling fund to capture this growth, although its expense ratio is high and it’s more volatile than XAR, as illustrated by its higher beta and five-year max drawdown.
XAR provides exposure to the defense sector, which has seen increased federal spending under the Trump Administration. Its equal weighting ensures larger companies don’t dominate fund performance, which takes advantage of the higher growth potential of the smaller businesses among its holdings. XAR is the fund for investors who want to take advantage of the “Security Supercycle” driven by escalating geopolitical tensions and heavy government investment in military readiness and modernization.
Why State Street's Options Volume Just Sent a Bullish SignalState Street NYSE: STT reported sharply higher second-quarter 2026 earnings and raised its full-year outlook, as executives pointed to record fee revenue, record net interest income and continued momentum across investment servicing, investment management and markets.
Chief Executive Officer Ron O'Hanley said the quarter reflected “disciplined execution, deep client engagement, and continued momentum across our businesses.” The company reported second-quarter earnings per share of $3.65, up from $2.17 in the prior-year period. Excluding prior-year notable items, earnings grew 44% year over year, according to O'Hanley.
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Iron Mountain Down 23% From Its 1-Year High—Is It Undervalued?Total revenue rose 17% from a year earlier to a record $4 billion. Chief Financial Officer John Woods said fee revenue increased 16% to $3.2 billion, while net interest income rose 18% to $860 million, supported by a 17-basis-point increase in net interest margin to 113 basis points.
Expenses increased 10% year over year to $2.7 billion, excluding notable items, primarily due to higher revenue-related costs and continued strategic investments. The results lifted pre-tax margin by 470 basis points to 34%, while return on tangible common equity rose more than six percentage points to about 26%.
Servicing, Management and Markets Drive Growth The Behemoth BlackRock’s Next Trillion Comes From Private AssetsState Street’s investment servicing business posted second-quarter servicing fees of $1.5 billion, up 13% year over year. Woods said the increase reflected approximately 7% organic growth from client activity, flows and net new business, with additional support from higher average market levels and currency translation.
Assets under custody and administration ended the quarter at a record $57.9 trillion, up 18% from a year earlier. Servicing fee sales totaled $87 million, with Woods citing continued demand across regions and strength in strategic growth areas, including alternatives.
In investment management, fees rose 29% year over year to $772 million, supported by roughly 9% organic growth and higher average market levels. Assets under management reached a record $6.3 trillion, up 23% year over year, while net inflows totaled $114 billion. Woods said the quarter marked the fifth consecutive quarter of positive organic growth, led by $66 billion of index ETF inflows and $35 billion of cash inflows.
State Street also launched 38 new products and solutions during the quarter, including a tokenized money market solution and a stablecoin reserves fund. O'Hanley highlighted that SPYM, the company’s low-cost S&P 500 ETF, was selected by the U.S. Department of the Treasury as the exclusive default ETF for Trump Accounts.
Markets revenue also strengthened. FX trading services revenue increased 27% year over year, excluding a prior-year notable item, to $494 million, driven by record client volumes. Securities finance revenue rose 19% year over year on higher client lending balances. Software services revenue declined 14%, excluding a prior-year notable item, reflecting elevated on-premises renewal activity in the prior year, though Woods said software and data revenue rose 10%.
Outlook Raised for 2026 State Street raised its full-year outlook, excluding notable items. The company now expects fee revenue growth of 12% to 13%, up from its prior forecast of 7% to 9%. Net interest income is expected to grow 14% to 15%, compared with a previous outlook of 8% to 10%.
Woods said the improved net interest income outlook primarily reflected stronger average deposit balances. The company expects expenses to rise by roughly 8%, up from the prior 5% to 6% forecast, reflecting higher revenue-related costs and continued investment.
Based on its current outlook, State Street expects roughly 500 basis points of positive operating leverage in 2026 and a pre-tax margin of approximately 32%. The company continues to expect an effective tax rate of about 22% and a total payout ratio of roughly 80%, subject to board approval and other factors.
State Street’s capital position remained stable, with standardized CET1 and Tier 1 leverage ratios of 10.8% and 5.3%, respectively, at quarter end. The company returned $631 million to shareholders during the quarter through $400 million of share repurchases and $231 million in declared common dividends. Following the Federal Reserve’s stress test results, State Street announced a 10% increase in its quarterly common dividend to $0.92 per share beginning in the third quarter.
Company Sets Medium-Term Margin and Return Targets Executives also outlined new medium-term financial targets, including a 35% pre-tax margin and return on tangible common equity in the mid-20s “over the cycle.” O'Hanley said the company’s next phase of growth will be driven by three strategic pillars: growth in core businesses, initiatives in alternatives, digital assets and wealth services, and a technology- and AI-enabled transformation of the operating model.
Woods said investment services is expected to contribute approximately 300 basis points of enterprise margin expansion over the medium term through organic revenue growth and productivity initiatives. Investment management is expected to contribute about 200 basis points, supported by ETFs, index investing, fixed income, wealth, alternatives and tokenization. Markets is expected to add about 100 basis points through geographic expansion, product innovation and efficiency initiatives.
The company expects its transformation program to deliver approximately $1 billion of run-rate benefits by 2029, with about 75% coming from expense productivity and 25% from revenue. Woods said the company anticipates about $500 million of one-time costs, mostly related to severance, as part of the transformation.
During the question-and-answer session, Woods said State Street expects positive operating leverage of 100 to 150 basis points on average over the medium term, which could allow the company to reach the 35% margin target toward the earlier end of its three- to five-year framework. He said the company’s net interest income is expected to rise in the low- to mid-single digits over the medium term, supported by low-single-digit balance sheet growth and net interest margin moving toward the upper end of its 110- to 115-basis-point range.
Executives Discuss Digital Assets and AI O'Hanley described State Street’s digital asset strategy as focused on serving as infrastructure for clients moving between traditional and digital finance. He said the company is “picking our spots” based on client demand, including tokenized money market funds. Woods said State Street’s digital asset platform is designed to support wallet management and the on- and off-ramps between traditional finance and on-chain activity.
On artificial intelligence, Woods said AI will be embedded into State Street’s operating model, including the use of agentic capabilities in cross-functional teams. He also said the company expects AI tools to improve software developer productivity by 30% to 40%, with additional productivity gains across eligible employees through standardized AI tools.
O'Hanley said the company is entering its next phase “from a position of strength,” citing the scale of its custody, asset management, ETF and markets franchises. “These are the targets that we’re aiming for,” he said. “They’re ambitious, but we’re going to hit them.”
About State Street NYSE: STTState Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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BNY Mellon (NYSE:BK | BK Price Prediction) and State Street (NYSE:STT) both posted record Q1 2026 results as the two custody giants ride a wave of client activity and foreign exchange volumes. The comparison matters now because their strategies are pulling apart. BNY is leaning into platforms and AI. State Street is defending ETF share in a market where fees keep sliding.
Platforms Lift BNY. ETFs Squeeze State Street. BNY delivered $5.409 billion in revenue, a 37% pre-tax margin, and 42% EPS growth to $2.25 adjusted. Asset Servicing revenue jumped 22% and Clearance and Collateral Management gained 15%, which shows the diversified engine is firing. CEO Robin Vince said BNY “delivered the strongest quarterly sales performance in our history.”
State Street posted $3.80 billion in revenue with an adjusted pre-tax margin of 29.0%. Servicing fees rose 10.5% and management fees jumped 23%, but the company also absorbed $89 million in workforce repositioning charges. SPDR inflows were strong, yet the SPDR business is exactly where fee compression is fiercest.
Business Driver BNY Mellon State Street Revenue $5.41B $3.80B Pre-Tax Margin 37% 29% AUC/A $59.4T ~$53.8T An Asset-Light Monopoly Versus an ETF Price War BNY is running a platforms operating model with over 220 enterprise AI solutions in production and 40% of code authored by AI last quarter. That is a real cost lever. State Street’s 57 new product launches, including the Prime Money Market ETF and PRAB, signal aggressive shelf expansion, but adding low-fee vehicles to defend share can dilute the very margins investors want protected.
The custom research view is blunt: BNY offers a 26.4% net margin and 12.4% return on equity, versus State Street’s 19.5% margin and 10.4% ROE. That gap is structural.
The Next Test Is Fee Durability I will watch whether BNY converts its $17 billion in Q1 AUM outflows into a positive flow story, because Investment Management growth of 6% lags the rest of the portfolio. For State Street, the tell is whether the $315 million in servicing fees and $2.7 trillion in AUC/A pipeline installs at pricing that holds the current margin. You should also note that STT is already trading near its 52-week high of $174.59 after a 34.7% YTD run.
Why I Lean Toward BNY Mellon Right Now If you want a custody franchise with elite profitability and a credible AI cost story, I lean toward BNY. The 800+ basis points of positive operating leverage and new $10 billion buyback tell me management can compound earnings without stretching. State Street’s 1.94% dividend yield and 17x trailing PE may suit an income-focused investor, but I would not chase it after a 59.9% one-year rally while ETF fee pressure is intensifying. I would change my view on STT only if pricing in the SPDR complex stabilized and pre-tax margin sustained above 30%.
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State Street Corporation (STT - Free Report) came out with quarterly earnings of $3.65 per share, beating the Zacks Consensus Estimate of $3.3 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.61%. A quarter ago, it was expected that this company would post earnings of $2.6 per share when it actually produced earnings of $2.84, delivering a surprise of +9.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
State Street, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $4.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.95%. This compares to year-ago revenues of $3.45 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
State Street shares have added about 44.6% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for State Street?While State Street has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for State Street was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.41 on $3.91 billion in revenues for the coming quarter and $12.75 on $15.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Northern Trust Corporation (NTRS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22.
This company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level.
Northern Trust Corporation's revenues are expected to be $2.2 billion, up 10.1% from the year-ago quarter.
State Street has surged ~80% in the past year, driven by cost discipline, market appreciation, and a favorable rate environment. Q2 earnings exceeded expectations, with revenue up 17% and EPS at $3.65, but shares dipped post-earnings amid valuation concerns. STT's fee revenue growth lags AUC due to compression, but strong ETF flows, FX trading, and securities lending offset weaknesses in software services.
State Street Corporation (STT - Free Report) reported $4.05 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 17.4%. EPS of $3.65 for the same period compares to $2.53 a year ago.
The reported revenue represents a surprise of +3.95% over the Zacks Consensus Estimate of $3.89 billion. With the consensus EPS estimate being $3.30, the EPS surprise was +10.61%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how State Street performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Basel III Advanced Approaches - Tier 1 Leverage Ratio: 5.3% versus the three-analyst average estimate of 5.4%.Net interest margin (FTE): 1.1% versus 1.1% estimated by three analysts on average.Average balance - Total interest-earning assets: $305.41 billion compared to the $294.79 billion average estimate based on two analysts.Basel III Standardized Approach - Tier 1 capital ratio: 13.2% versus 13.9% estimated by two analysts on average.Assets under Management (AUM): $6,278.00 billion versus $6,182.00 billion estimated by two analysts on average.Net Interest Income: $860 million versus the three-analyst average estimate of $833.83 million.Total fee and other revenue: $3.19 billion compared to the $3.06 billion average estimate based on three analysts.Net Interest Income - fully taxable-equivalent basis: $860 million compared to the $833.83 million average estimate based on three analysts.Software services: $166 million versus $177.62 million estimated by two analysts on average.Other fee revenue: $138 million versus the two-analyst average estimate of $116 million.Management fees: $772 million versus the two-analyst average estimate of $747.55 million.Servicing fees: $1.47 billion versus $1.48 billion estimated by two analysts on average.View all Key Company Metrics for State Street here>>>
Shares of State Street have returned +9.1% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways State Street beat Q2 earnings estimates as record revenues, AUC/A and AUM supported strong results.STT's fee revenues rose 17.2% y/y and NII increased 18%, while no credit-loss provision boosted earnings.State Street's AUC/A reached a record $57.86T and AUM hit $6.28T, driven by market gains and inflows. State Street’s (STT - Free Report) second-quarter 2026 earnings of $3.65 per share surpassed the Zacks Consensus Estimate of $3.30. The bottom line increased 68.2% from the prior-year quarter.
Results were aided by year-over-year growth in net interest income (NII) and fee revenues, along with nil provisions. Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a spoilsport.
Net income available to common shareholders (GAAP basis) was $1.03 billion, surging 62.9% from the year-ago quarter.
STT’s Revenues Improve, Expenses RiseTotal revenues were a record $4.05 billion, which increased 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $3.89 billion.
NII was $860 million, up 18% year over year.
The net interest margin expanded 17 basis points year over year to 1.13%.
Total fee revenues increased 17.2% year over year to $3.19 billion. The rise was driven by an increase in all fee income components, except for software services fees.
Non-interest expenses were $2.66 billion, up 5.1% from the prior-year quarter. The rise was due to an increase in all cost components, except for occupancy costs.
The company did not record any provision for credit losses in the quarter, as against $30 million in the prior-year quarter.
The Common Equity Tier 1 ratio was 10.8% as of June 30, 2026, compared with 10.7% in the corresponding period of 2025. The return on average common equity was 16.7% compared with 10.8% in the year-ago quarter.
Asset Balances Increase for State Street to Record LevelsAs of June 30, 2026, the total AUC/A was a record $57.86 trillion, up 18.1% year over year. The rise was driven by higher quarter-end equity market levels, client flows and net new business.
AUM was a record $6.28 trillion, up 22.7% year over year, led by higher quarter-end market levels and net inflows.
STT’s Share Repurchase UpdateIn the reported quarter, State Street repurchased shares worth $400 million.
Our Take on State StreetSTT’s strategic buyouts, rising AUM balance and solid business servicing wins are expected to keep supporting its financials. However, persistently rising expenses and concentrated fee-based revenues are concerning.
State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksThe Bank of New York Mellon Corporation’s (BNY - Free Report) second-quarter 2026 adjusted earnings of $2.46 per share handily surpassed the Zacks Consensus Estimate of $2.20. The bottom line increased 26.8% from the year-ago quarter.
BNY’s results primarily benefited from a rise in fee revenues and NII. Also, the company recorded a provision benefit in the quarter, which was a tailwind.
Bank of America’s (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year.
BAC recorded an improvement in trading numbers for the 17th straight quarter. The company’s investment banking performance was solid this time as well. These, along with higher NII, drove Bank of America’s total revenues. While provisions declined in the quarter on a year-over-year basis, non-interest expenses increased, which hurt the results to some extent.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) reported its second-quarter 2026 financial results today. The news release, presentation and additional financial information can be accessed on State Street's Investor Relations website, http://investors.statestreet.com. A conference call to discuss the firm's financial results, outlook and related matters will be held at 11:00 a.m. ET today, Thursday, July 16, 2026. The call will be open to the public. The conference call will be a.
The State Street logo in this illustration taken April 24, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 16 (Reuters) - Custodian bank State Street (STT.N), opens new tab reported a rise in profit on Thursday, driven by a jump in fees earned from managing client assets.
Shares of the bank, which have gained nearly 45% in 2026 and outperformed the broader markets, were up 1.8% in trading before the bell.
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Here are more details from the earnings report:
The bank's assets under custody and administration jumped 18% to $57.86 trillion in the three months ended June 30 from a year earlier, driven by higher market levels, flows and net new business.
State Street reported investment management assets under management of $6.28 trillion, a growth of 23% over the year-ago period.
Its total fee revenue rose 17% to $3.19 billion in the quarter.
The bank's foreign exchange trading services revenue jumped nearly 26% to $494 million in the quarter, boosted by higher client volumes mostly in Asia-Pacific.
Its quarterly profit rose to $1.08 billion, or $3.65 per share, from $693 million, or $2.17 per share, a year earlier.
Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways State Street recently raised its dividend to 92 cents per share, payable Oct. 13, 2026.GS boosted its quarterly dividend to $5 per share as part of five highlighted dividend growers.UNM offers the highest dividend yield among the five stocks at 2.1% after its latest dividend increase. At first glance, the U.S. economy looks remarkably stronger in the beginning of second half of 2026 than many investors expected. Despite solid stock market gains and easing inflation, several risk factors, such as geopolitical tensions, oil supply disruptions, trade uncertainties, and shifting Federal Reserve policies, continue to challenge the U.S. economy. The labor market has shown resilience, although the pace of hiring has slowed noticeably.
The June nonfarm payrolls increased by just 57,000, while ADP reported 98,000 new private-sector jobs. Although unemployment dipped to 4.2%, labor force participation fell to 61.5%, its lowest level since 2021, pointing to underlying weakness. Hiring has also become uneven, with manufacturing, construction and leisure sectors lagging.
Inflation has certainly improved, but investors should not assume that the problem has disappeared. June's Consumer Price Index fell 0.4% from the previous month, while annual inflation eased to 3.5% largely due to lower oil prices after the Strait of Hormuz reopened. However, military tensions, which have resurfaced several times, could quickly reverse that progress. Trade uncertainty, a wider $77.6 billion trade deficit, weak housing activity, and high mortgage rates remain additional concerns.
Meanwhile, the market's heavy reliance on AI-driven stocks and uncertainty over future Federal Reserve policy could increase volatility. These challenges suggest investors should remain selective and prepared for a more volatile market despite the economy's overall resilience.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as State Street (STT - Free Report) , The Goldman Sachs Group (GS - Free Report) , Cummins (CMI - Free Report) , Ryder System (R - Free Report) and Unum Group (UNM - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
State StreetState Street provides a range of financial products and services for institutional investors worldwide through its subsidiaries. This Zacks Rank #2 (Buy) company is headquartered in Boston, MA. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On July 14, STT declared that its shareholders would receive a dividend of 92 cents a share on Oct. 13, 2026. STT has a dividend yield of 1.8%.
Over the past five years, STT has increased its dividend six times, and its payout ratio presently sits at 30% of earnings. Check State Street's dividend history here.
Goldman SachsGoldman Sachs is headquartered in New York, NY. This Zacks Rank #2 is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base.
On July 13, GS declared that its shareholders would receive a dividend of $5 a share on Sept. 29, 2026. GS has a dividend yield of 1.6%.
In the past five years, GS has increased its dividend seven times. Its payout ratio is currently 33% of earnings. Check Goldman Sachs’ dividend history here.
CumminsCummins is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. This Columbus, IN-based company currently carries a Zacks Rank #2.
On July 12, CMI declared that its shareholders would receive a dividend of $2.20 a share on Sept. 3, 2026. CMI has a dividend yield of 1.2%.
Over the past five years, CMI has increased its dividend six times, and its payout ratio presently sits at 33% of earnings. Check Cummins’ dividend history here.
Ryder SystemRyder System is headquartered in Coral Gables, FL. This Zacks Rank #2 company is recognized as one of the world's largest providers of integrated logistics and transportation solutions.
On July 9, R declared that its shareholders would receive a dividend of $1.01 a share on Sept. 18, 2026. R has a dividend yield of 1.4%.
In the past five years, R has increased its dividend six times. Its payout ratio is currently 28% of earnings. Check Ryder System’s dividend history here.
Unum GroupUnum Group provides financial protection benefit solutions in the United States, the United Kingdom and Poland. This Chattanooga, TN-based company currently carries a Zacks Rank #3 (Hold).
On July 9, UNM announced that its shareholders would receive a dividend of 51 cents a share on Aug. 14, 2026. UNM has a dividend yield of 2.1%.
Over the past five years, UNM has increased its dividend six times. Its payout ratio now sits at 22% of earnings. Check Unum Group's dividend history here.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced a quarterly cash dividend of $0.92 per share of common stock, payable on October 13, 2026 to common shareholders of record at the close of business on October 1, 2026. Additionally, State Street Corporation announced a cash dividend on each of the below outstanding series of non-cumulative perpetual preferred stock: Series G (represented by depositary shares, each representing a 1/4000th interest in a share of Series G.
US banks could deliver broad earnings beats as strong capital markets activity, resilient economic conditions and improving wealth management flows support second-half 2026 and fiscal 2027 earnings revisions, Bank of America analysts wrote in a note ahead of the sector’s upcoming earnings reports.
The firm wrote that it expects all eight major banks it covers, including JPMorgan Chase & Co (NYSE:JPM, XETRA:CMC), Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC, XETRA:NWT), Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS), Morgan Stanley (NYSE:MS), Bank of New York Mellon Corp (NYSE:BK, XETRA:BN9), State Street Corp (NYSE:STT) and Northern Trust Corp (NASDAQ:NTRS), to exceed both Bank of America and consensus earnings-per-share estimates.
It added that potential upside in net interest income, particularly at JPMorgan and Citigroup, along with stronger wealth management flows at Morgan Stanley (NYSE:MS) and Northern Trust, could support positive investor reactions.
The firm noted that while investors often look past trading and investment banking revenue beats because they are not always incorporated into long-term estimates, stronger underlying revenue trends could lead to broader earnings revisions.
JPMorgan Chase is among the stocks Bank of America views as having the most asymmetric risk-reward setup heading into results. The firm wrote that investors remain focused on management’s cautious commentary around current earnings levels, with executives previously warning that the bank may be “over-earning” in the near term. However, Bank of America expects stronger capital markets revenue to support second-quarter earnings, raising its EPS estimate to $5.59 from $5.48.
Citigroup could also see continued momentum, with Bank of America writing that the company’s conservative guidance contrasts with a strong operating environment. The firm expects stronger capital markets revenue to lift its second-quarter EPS estimate to $2.65 from $2.60, while noting that investors will be watching progress toward return on tangible common equity targets.
For Wells Fargo, Bank of America wrote that investor focus will remain on net interest income growth and whether the bank can achieve its targeted returns while executing its broader growth strategy. The firm maintained its second-quarter EPS estimate of $1.72, noting that confidence around Wells Fargo’s ability to deliver on its net interest income outlook could be key for the stock’s performance following results.
Morgan Stanley enters earnings with positive momentum tied to its wealth management business, trading operations and international franchise, according to Bank of America. The firm wrote that investors will be watching net new asset growth in wealth management, particularly following recent initial public offerings and continued integration benefits from its workplace business. Bank of America raised its second-quarter EPS estimate for Morgan Stanley to $2.81 from $2.71 due to stronger capital markets revenue expectations.
Goldman Sachs is expected to report strong revenue trends, though Bank of America wrote that investors will be looking for evidence that earnings growth and return on equity remain sustainable following the stock’s recent outperformance. The firm raised its second-quarter EPS estimate to $14.11 from $13.18 on stronger capital markets revenue expectations.
Bank of America wrote that Goldman Sachs’ capital management, efficiency initiatives and ability to sustain returns through market cycles will remain key areas of investor attention. The firm added that while stronger trading and investment banking activity could drive an earnings beat, investors may place greater emphasis on the durability of future earnings growth and the bank’s premium valuation.
In its upcoming report, State Street Corporation (STT - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $3.30 per share, reflecting an increase of 30.4% compared to the same period last year. Revenues are forecasted to be $3.85 billion, representing a year-over-year increase of 11.5%.
The consensus EPS estimate for the quarter has undergone an upward revision of 4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some State Street metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Basel III Advanced Approaches - Tier 1 Leverage Ratio' to reach 5.4%. The estimate is in contrast to the year-ago figure of 5.3%.
Analysts expect 'Average balance - Total interest-earning assets' to come in at $294.79 billion. Compared to the present estimate, the company reported $304.65 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Basel III Standardized Approach - Tier 1 capital ratio' will likely reach 13.9%. The estimate is in contrast to the year-ago figure of 13.3%.
Based on the collective assessment of analysts, 'Assets under Management (AUM)' should arrive at $6182.00 billion. Compared to the current estimate, the company reported $5117.00 billion in the same quarter of the previous year.
The consensus estimate for 'Net Interest Income' stands at $833.83 million. Compared to the present estimate, the company reported $729.00 million in the same quarter last year.
According to the collective judgment of analysts, 'Total fee and other revenue' should come in at $3.06 billion. Compared to the current estimate, the company reported $2.72 billion in the same quarter of the previous year.
It is projected by analysts that the 'Net Interest Income - fully taxable-equivalent basis' will reach $833.83 million. The estimate is in contrast to the year-ago figure of $729.00 million.
The collective assessment of analysts points to an estimated 'Software services' of $177.62 million. The estimate compares to the year-ago value of $230.00 million.
Analysts predict that the 'Other fee revenue' will reach $116.00 million. Compared to the present estimate, the company reported $66.00 million in the same quarter last year.
The consensus among analysts is that 'Management fees' will reach $747.55 million. The estimate is in contrast to the year-ago figure of $562.00 million.
The average prediction of analysts places 'Servicing fees' at $1.48 billion. Compared to the present estimate, the company reported $1.30 billion in the same quarter last year.
Analysts' assessment points toward 'Foreign exchange trading services' reaching $404.55 million. The estimate is in contrast to the year-ago figure of $431.00 million.
View all Key Company Metrics for State Street here>>>
Shares of State Street have demonstrated returns of +7.5% over the past month compared to the Zacks S&P 500 composite's +4.3% change. With a Zacks Rank #2 (Buy), STT is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways State Street's Q2 earnings is estimated at $3.30, up 30.4%, while sales are seen rising 11.5%.NII is projected to climb 14.4% to $833.8 million, supported by robust lending and stable funding costs.Total fee revenues are expected to rise 12.6%, led by management, servicing and securities finance fees. State Street (STT - Free Report) is slated to report second-quarter 2026 results on July 16, before market open. The company’s quarterly revenues and earnings are expected to have risen year over year.
In the first quarter of 2026, STT’s earnings outpaced the Zacks Consensus Estimate. Results were aided by growth in fee revenues and net interest income (NII). Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances. However, higher expenses and provisions were undermining factors.
State Street has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 6.97%, on average.
Major Q2 Factors & Estimates for State StreetNII: In the quarter, the Federal Reserve kept interest rates unchanged and signaled a hike later in the year. Further, a solid lending scenario (per the Fed’s latest data, overall loan growth was robust in the quarter) and stabilizing funding/deposit costs are expected to have offered the much-needed support to STT’s NII growth.
The Zacks Consensus Estimate for State Street’s average interest-earning assets is pegged at $294.8 billion, which implies a 3.2% decline from the prior-year quarter.
The consensus estimate for NII (on a fully taxable-equivalent basis) of $833.8 million indicates a 14.4% year-over-year rise.
Fee Revenues: Supported by solid inflows, the company’s AUM and AUC/A balances are expected to have increased in the to-be-reported quarter. Thus, management fees are likely to have benefited. The consensus estimate for management fees of $747.6 million implies a 33% year-over-year jump.
The consensus estimate for securities finance revenues of $133.9 million implies a 6.2% increase.
At the end of the first quarter, STT reported $315 million of servicing fee revenues to be installed. Hence, the metric is likely to have grown in the second quarter. The Zacks Consensus Estimate for servicing fees of $1.48 billion indicates a 13.1% improvement.
The Zacks Consensus Estimate for FX trading services income is pegged at $404.6 million, suggesting a 6.1% year-over-year decline. The consensus estimate for software services fees suggests a 22.8% decrease to $177.6 million.
Overall, the Zacks Consensus Estimate for total fee revenues of $3.06 billion indicates 12.6% year-over-year growth.
Expenses: Total expenses at State Street are expected to have increased in the second quarter, primarily due to higher information systems and communication costs, as well as spending on strategic acquisitions, expansion efforts and franchise investments.
While the company has been taking steps to enhance operating efficiency, ongoing investments in growth initiatives, infrastructure and technology are likely to have exerted upward pressure on costs in the to-be-reported quarter.
What the Zacks Model Unveils for State StreetPer our model, the likelihood of State Street beating the Zacks Consensus Estimate this time around is high. This is because the company has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for State Street is +0.35%.
Zacks Rank: STT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
State Street’s Q2 Earnings & Sales EstimatesThe Zacks Consensus Estimate for State Street’s earnings of $3.30 per share has been revised 2.8% higher over the past seven days. The figure suggests a 30.4% surge from the year-ago quarter.
The consensus estimate for quarterly sales of $3.85 billion indicates an 11.5% increase.
State Street’s Peers Worth a LookHere are STT’s peers that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Bank of New York Mellon Corporation (BNY - Free Report) is slated to report second-quarter 2026 results on July 15. The company has a Zacks Rank #2 at present and an Earnings ESP of +0.05%.
Quarterly earnings estimates for BNY have been moved north to $2.20 over the past week.
The Earnings ESP for Northern Trust (NTRS - Free Report) is +0.50% and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 results on July 22.
Over the past seven days, the Zacks Consensus Estimate for Northern Trust’s quarterly earnings has been revised upward to $2.68.
State Street Corporation (STT - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for State Street basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for State Street imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for State StreetFor the fiscal year ending December 2026, this company is expected to earn $12.75 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for State Street. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of State Street to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
State Street Corporation (NYSE:STT) will release its second quarter earnings report before the opening bell on Thursday, July 16.
Analysts expect the Boston, Massachusetts-based company to report quarterly earnings of $3.31 per share, up from $2.53 per share in the year-ago period. The consensus estimate for State Street’s quarterly revenue is $3.87 billion. It reported $3.45 billion last year, according to Benzinga Pro.
On June 24, State Street increased its quarterly dividend from 84 cents to 92 cents per share.
Shares of State Street rose 1.6% to close at $180.16 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying STT stock? Here’s what analysts think:
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The market expects State Street Corporation (STT - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 16. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $3.30 per share in its upcoming report, which represents a year-over-year change of +30.4%.
Revenues are expected to be $3.85 billion, up 11.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.02% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for State Street?For State Street, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.35%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that State Street will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that State Street would post earnings of $2.6 per share when it actually produced earnings of $2.84, delivering a surprise of +9.23%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
State Street appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Banks - Major Regional industry, BNY (BNY - Free Report) , is soon expected to post earnings of $2.2 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.4%. This quarter's revenue is expected to be $5.38 billion, up 7.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for BNY has been revised 1.7% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.05%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that BNY will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
, /PRNewswire/ -- Bloomberg announced today it has facilitated its first electronic Indian Government Bonds (IGBs) trade, marking a key step in the internationalization of India's rapidly opening Government Bond markets.
This new electronic trading workflow for IGBs facilitates Foreign Portfolio Investors (FPIs) to efficiently access liquidity provided by international and domestic banks through the Bloomberg Terminal.
The offering, which is part of Bloomberg Electronic Markets, enables FPIs to place, monitor, execute, and allocate IGB trades within a fully electronic trading workflow. The workflow connects directly with Negotiated Dealing System-Order Matching (NDS-OM), managed and operated by Clearcorp Dealing Systems (India) Limited (Clearcorp), improving operational efficiency, reducing manual processes, and minimizing operational risk and errors.
"We are excited to have successfully implemented the first fully electronic IGBs trade on Bloomberg," said Vernon Loh, Fixed Income Trader at State Street Investment Management. "This milestone underscores our commitment to driving innovation, enhancing efficiency, and improving liquidity in fixed income markets."
"We are pleased to connect Bloomberg's global liquidity community with NDS-OM and provide clients with a more efficient way to access liquidity in the Indian Government Bond markets," said Varun Chojhar, Head of Bloomberg, South Asia.
This offering adds to Bloomberg's solutions for the region, and follows Bloomberg Indices' inclusion of India Fully Accessible Route (FAR) Bonds in the Bloomberg Emerging Market (EM) Local Currency Government Index in 2025.
Bloomberg's Electronic Markets solutions are used by leading financial institutions to trade efficiently in over 175 markets around the world. More than 9,000 client firms use Bloomberg Electronic Markets to access industry-leading depth and breadth of liquidity across asset classes from over 1,500 dealers globally. Bloomberg Electronic Markets provides market participants with comprehensive solutions across the trading lifecycle, including robust price transparency, analytics, automation and execution, powered by Bloomberg's high-quality, multi-asset class data and tools.
About Bloomberg
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration.
For more information, visit Bloomberg.com/company or request a demo.
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go. State Street Investment Management is the asset management arm of State Street Corporation (NYSE: STT).
*This figure is presented as of March 31, 2026 and includes ETF AUM of $1,940.32 billion USD of which approximately $184.18 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at State Street Corporation (STT - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. State Street Corporation currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if STT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For STT, shares are up 1.53% over the past week while the Zacks Banks - Major Regional industry is up 1.35% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.74% compares favorably with the industry's 7.53% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of State Street Corporation have increased 24.25% over the past quarter, and have gained 60.31% in the last year. On the other hand, the S&P 500 has only moved 14.34% and 21.46%, respectively.
Investors should also pay attention to STT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STT is currently averaging 2,436,558 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with STT.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STT's consensus estimate, increasing from $12.30 to $12.56 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that STT is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep State Street Corporation on your short list.
The Fidelity MSCI Health Care Index ETF (FHLC +2.54%) may appeal to cost-conscious investors seeking broad stability, whereas the State Street SPDR S&P Biotech ETF (XBI +2.42%) targets growth through a narrow, higher-cost focus.
Healthcare is a pillar of the market, but investors must choose between broad stability and niche volatility. One fund targets high-reward biotech, while the other provides a diversified anchor across pharmaceuticals and services. This comparison evaluates how these different scopes affect cost and returns.
Snapshot (cost & size)MetricXBIFHLCIssuerSPDRFidelityShare price (as of July 1, 2026)$156.55$77.70Expense ratio0.35%0.08%1-yr return (as of July 1, 2026)89.3%21.8%Dividend yield0.4%1.3%Beta1.120.60AUM$10.6 billion$3 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Fidelity fund is notably more affordable. Investors seeking income may also prefer FHLC, as it offers a significantly higher payout than the biotech-heavy alternative.
Performance & risk comparisonMetricXBIFHLCMax drawdown (5 yr)(54%)(17.7%)Growth of $1,000 over 5 years (total return)~$1,154~$1,289What's insideThe Fidelity ETF provides exposure to the entire U.S. healthcare sector, including pharmaceuticals, healthcare providers, and medical equipment companies. It holds 338 stocks, and its largest positions include Eli Lilly (LLY +1.35%) at 14%, Johnson & Johnson (JNJ +3.35%) at 8.95%, and AbbVie (ABBV +3.90%) at 6.5%. The fund was launched in 2013. The Fidelity ETF has paid $1.02 per share over the trailing 12 months, which on its recent ~$77.70 share price works out to a 1.3% yield.
The SPDR fund focuses exclusively on the biotechnology subsector using a modified equal-weighted approach. It holds 157 stocks, and its top holdings include Apogee Therapeutics (APGE +0.10%) at 1.5%, Moderna (MRNA +10.01%) at 1.48%, and Twist Bioscience (TWST 2.94%) at 1.41%. The fund was launched in 2006. The SPDR ETF has paid $0.57 per share over the trailing 12 months, which on its recent ~$156.55 share price works out to a 0.4% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsBroadly speaking, the Fidelity ETF will likely appeal more to conservative investors. It holds more stocks so it's more diversified, it has a lower expense ratio, and it has a lower recent maximum drawdown. The fund also pays a modest dividend. The only thing I would point out is that while FHLC holds more stocks, its top 10 holdings account for about half of the portfolio's value, so there is some concentration risk here.
The SPDR fund is probably more suitable for aggressive investors. It has a strong one-year return, but its growth over the past five years is much less impressive, and it has a much higher maximum drawdown compared to FHLC. (Biotech specifically is riskier than healthcare as a whole, so that tracks.) Furthermore, it has a higher expense ratio.
Erin Kennedy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, Moderna, and Twist Bioscience. The Motley Fool recommends Johnson & Johnson and SPDR S&P Biotech ETF. The Motley Fool has a disclosure policy.
The State Street SPDR S&P Bank ETF offers a broader portfolio and slightly lower expense ratio than the iShares U.S. Regional Banks ETF. While the iShares U.S. Regional Banks ETF has higher 1-year total returns, it has experienced significantly deeper drawdowns over the past five years.
Banks have rallied during the past few months, lifting the KBW Nasdaq Bank Index, which tracks the largest U.S. bank stocks, more than 12% so far this year.
But there is one often overlooked sector of the banking industry that has outperformed considerably: custody banks. These are not like traditional banks that lend to consumers and businesses. They hold and service huge amounts of institutional assets -- such as mutual funds, pensions, exchange-traded funds (ETFs), stocks and other investments, real estate, cash, hedge funds, endowments, and 401(k)s -- all from large institutions.
They collect fees on these assets for servicing and holding them -- and those fees rise as the asset totals increase.
Image source: Getty Images.
In addition, custody banks hold clients' uninvested cash and pay a low deposit rate. But they aggregate cash and reinvest it in liquid, higher-yielding short-term instruments, profiting off the difference.
They also make money through securities lending, where they loan idle stocks and bonds from their clients to third parties -- like brokers or hedge funds -- to settle short sales or other trades. In exchange, the borrower provides collateral, typically bonds or cash, which the custody bank then invests and splits the return with the borrower.
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In addition to custody services, all banks have asset management arms with a roster of ETFs, funds, and separate accounts. State Street (STT +0.54%), one of the largest custody banks, runs the SPDR funds through its asset management arm.
It is a very sturdy, all-weather business dominated by a few major players. Right now, the leading custody banks, State Street, BNY Mellon (BNY +0.97%), and Northern Trust (NTRS +1.01%), are firing on all cylinders.
The top custody banks are all significantly outperforming other bank stocks and hovering near all-time highs. State Street is up 32% this year, while BNY Mellon has gained 26%, and Northern Trust has rallied 29%.
BNY Mellon is the largest custodian bank, overseeing some $59 trillion in client assets. It also manages $2 trillion in assets. In the first quarter, BNY Mellon reported record revenue of $5.4 billion, up 13% year over year. Fee income rose 12% year over year to $3.8 billion, while net interest income jumped 18% to $1.4 billion. Further, net income spiked 36% to $1.6 billion, while earnings rose 42% to $2.24 per share.
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What sparked the surge in revenue despite a rocky first quarter? A few factors benefited BNY Mellon and custody banks that did not apply to traditional consumer banks.
BNY Mellon attracted more deposits and client assets, as more of its large clients made a flight to safety during a volatile quarter. They sought the safety of parking their cash and gaining interest. This helped BNY Mellon increase assets under custody (AUC), which boosted fee income. Custody assets rose 12%, and average deposits surged 13% year over year.
In addition, BNY Mellon saw a spike in trading and foreign exchange income because, during volatile markets, the number of transactions by pensions and funds increase to rebalance and make changes to their portfolios. Further, the high interest rates on short-term bonds and investments in which BNY Mellon invested its assets helped raise spreads and net interest income.
I'm using BNY Mellon as an example, but the other major custody banks had similar results.
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These custody banks will release their Q2 earnings in the coming weeks. BNY Mellon reports earnings on July 15, followed by State Street on July 16 and Northern on July 22.
All three stocks are buys heading into earnings because they are relatively cheap, are stable businesses as the dominant players among a small group of competitors that collect fees no matter the market environment, and aren't as reliant on net interest income. But with the S&P 500 (^GSPC 0.22%) rising almost 15% in Q2, these custody banks should see AUC and revenue surge to perhaps new records.
Vanguard Total Stock Market ETF holds more than twice as many companies as State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF. Both funds carry a minimal 0.03% expense ratio making them among the most cost-effective options for total market exposure.
State Street SPDR Dow Jones Global Real Estate ETF provides exposure to both U.S. and international markets while Xtrackers International Real Estate ETF excludes the United States entirely. Xtrackers International Real Estate ETF features a lower expense ratio of 0.10% compared to 0.50% for the State Street SPDR Dow Jones Global Real Estate ETF.
Choosing between State Street Energy Select Sector SPDR ETF (XLE +0.97%) and Alerian MLP ETF (AMLP +1.41%) requires weighing the State Street fund's low costs against the Alerian fund's high-yield infrastructure focus.
Both funds target the energy sector, but through vastly different lenses. One tracks the broad energy giants of the S&P 500, while the other isolates the niche world of master limited partnerships that operate pipelines and storage facilities moving North American fuel.
Snapshot (cost & size)MetricAMLPXLEIssuerALPS FundsSPDRExpense ratio1.01%0.08%1-yr return (as of June 23, 2026)15.30%30.50%Dividend yield8.00%3.50%Beta0.500.42AUM$12.1 billion$36.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the closing price of June 23..
The State Street Energy Select Sector SPDR ETF is significantly more affordable, with an expense ratio of 0.08%, compared to 1.01% for the Alerian MLP ETF. However, the Alerian fund offers a higher payout to income seekers.
Performance & risk comparisonMetricAMLPXLEMax drawdown (5 yr)(20.90%)(26.00%)Growth of $1,000 over 5 years (total return)$2,097$2,373What's insideThe State Street Energy Select Sector SPDR ETF holds 21 companies, providing 100.00% exposure to the energy sector. It was launched in 1998. Its largest positions include Exxon Mobil (XOM +0.34%) at 22.1%, Chevron (CVX +0.42%) at 16.6%, and ConocoPhillips (COP 0.53%) at 6.8%. It has a trailing-12-month dividend of $1.88 per share.
In contrast, the Alerian MLP ETF is a non-diversified fund launched in 2010 that holds 20 energy infrastructure master limited partnerships. It allocates 98% to energy and 2% to utilities. Its largest positions include Plains All American Pipeline LP (PAA +0.70%) at 13.8%, Western Midstream Partners LP (WES +1.59%) at 13.6%, and Sunoco (SUN +4.18%) at 13.4%. It has paid $4.02 per share over the trailing 12 months.
These are two intriguing funds for energy-minded investors.
The State Street Energy Select Energy Sector SPDR, XLE, is structured like a typical ETF, holding the common stock of major energy firms. The fund is heavy in large producers and retailers such as ExxonMobil, ConocoPhillips, and Chevron. Given the straightforward nature of its holdings, very large, liquid stocks, the XLE has a quite affordable expense ratio of 0.08%. Fund performance has been good, returning about 13.5% over the 3-year time frame, close to 21% over the 5-year period, and 9.7% over the 10-year lookback.
The downside of the State Street fund is that many of its holdings are in the S&P 500, so an investor may already have exposure to many of the names. The relatively small amount of component stocks is a concentration concern, too.
The Alerian MLP ETF, AMLP, comes with a much higher expense ratio, but there’s a reason for that. MLPs — master limited partnerships — are a common structure for midstream oil and gas businesses. The structure means that MLPs don’t pay taxes, instead handing the tax bill to investors who receive distributions. Investing directly means handling K-1 forms for each MLP, which is a time-consuming and sometimes confusing tax-time hassle. This ETF simplifies investing in MLPs by handling the accounting itself and sending shareholders a single 1099 to use with their taxes. It’s simpler for sure. The high expense ratio includes an allowance for the ETF’s estimated tax liability, which it will incur in the future by not passing along the full tax liability to ETF holders. That expense is currently 0.17% of the fund’s 1.01% expense ratio, but that is likely to grow over time as the fund collects more distributions and tax liability.
AMLP is a good performer too, returning 20.2% over the 3-year lookback, 20.8% over the 5-year time frame, and 8.2% over the 10-year period.
The concentration of XLE is not ideal, but its long-term performance and low expense ratio make it the better bet for investors. However, AMLP is worth it for energy investors keen on simplifying their taxes with little performance trade-off.
For more guidance on ETF investing, check out the full guide at this link.
Key Takeaways STT announces a 10% dividend hike plan in third-quarter 2026.STT's new dividend, if approved by the board, will be 92 cents, up from the current 84 cents.The company has $2.1B share repurchase authorization remaining available as of March 31, 2026. State Street Corp. (STT - Free Report) intends to increase its quarterly dividend by 10% from 84 cents per share to 92 cents in third-quarter 2026, subject to approval by its board of directors. The announcement came yesterday, following the bank’s successful completion of this year’s stress test.
Per the test results, State Street’s Stress Capital Buffer will remain at the 2.5% floor through Sept. 30, 2027, and thus, its common equity tier 1 ratio requirement is unchanged at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.
After clearing last year’s stress test, State Street had increased its quarterly dividend 11%, before which, the company had hiked annual dividends four consecutive times by 10%. STT currently has a five-year annualized dividend growth of 9.43% and its payout ratio is 30% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while delivering lucrative returns to its shareholders.
Apart from regular dividend payouts, State Street enhances shareholder value through share repurchases. In January 2024, the company was authorized to repurchase shares worth up to $5 billion (with no expiration date). As of March 31, 2026, $2.1 billion worth of authorization remained available.
The company maintains a decent liquidity position. As of March 31, 2026, STT’s long-term debt was $25.2 billion, and other short-term borrowings were $4 billion, while cash and due from banks plus interest-bearing deposits with banks totaled $130.1 billion. Given its robust capital and liquidity position, the company is expected to sustain efficient capital distribution activities, through which it will keep boosting investor confidence in the stock.
STT’s Price Performance & Zacks RankOver the past six months, shares of State Street have gained 27.7%, outperforming the industry’s 13.3% growth.
Image Source: Zacks Investment Research
Currently, STT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capital Distribution Plans of Other BanksJPMorgan (JPM - Free Report) intends to increase its quarterly dividend 10% to $1.65 per share in the third quarter of this year. Also, JPM’s board of directors authorized a common share repurchase program worth $50 billion, effective July 1, 2026.
Likewise, Morgan Stanley (MS - Free Report) plans to increase its quarterly common stock dividend to $1.15 per share from the current $1. Also, Morgan Stanley’s board of directors reauthorized a multi-year share repurchase program of up to $20 billion, without an expiration date, beginning in the third quarter of 2026.
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of KeyCorp (KEY) and State Street Corporation (STT). But which of these two stocks presents investors with the better value opportunity right now?
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced its intention to increase its common stock dividend by 10% to $0.92 per share in the third quarter of 2026, subject to approval by its Board of Directors. State Street remains authorized to repurchase common shares under its existing share repurchase program previously approved by its Board of Directors.The Company also announced that it has completed the Federal Reserve's 2026 Supervisory Stress Test. Consistent with t.
BOSTON--(BUSINESS WIRE)--Private markets are entering a new phase of growth, as strong investor demand and broader access for individual investors reshape how capital is raised, structured and delivered, according to new research from State Street Corporation (NYSE: STT).
Delivering private markets to a broader investor base at scale is fundamentally reshaping how the industry operates. Success will depend on who can manage complexity and deliver consistent outcomes across a much wider set of clients. -Joerg Ambrosius
Share State Street’s fifth annual Private Markets Study, “Resilience Meets Opportunity,” shows that private markets demand remains highly resilient, even amid geopolitical uncertainty, inflation pressures and market volatility. Just 7% of firms expect to reduce allocations, while half plan to increase exposure, reinforcing private markets’ role as a core component of long-term portfolio construction.
At the same time, the industry is undergoing a structural shift toward individual investor participation, as firms expand access through wealth channels. More than 84% of asset and wealth managers either already offer or plan to offer private markets strategies for individual investors, signaling that access has moved from a long-term ambition to a core component of industry strategy.
“The private markets story is defined by resilience on one side and reinvention on the other,” said Joerg Ambrosius, president of Investment Services at State Street. “Demand remains strong but delivering private markets to a broader investor base at scale is fundamentally reshaping how the industry operates. Success will depend on who can manage complexity and deliver consistent outcomes across a much wider set of clients.”
While expanding access to individual investors remains a defining opportunity, firms are becoming more measured about the pace of growth. Around 43% of organizations now expect individual-focused vehicles to account for at least half of private markets fundraising within the next three years, down from 56% in the prior year’s survey, reflecting a more realistic view of operational and distribution challenges. Demand is being driven primarily by diversification and return potential, as well as access to key investment themes.
The study also points to a clear shift in where capital is being deployed. Artificial intelligence and AI infrastructure rank as the top investment theme globally, underscoring private markets’ role in financing long-term structural growth across economies.
“Even in a more uncertain environment, private markets are increasingly where investors access the most important long-term growth themes, serving as a critical source of returns and diversification,” said Donna Milrod, chief product officer at State Street. “AI, infrastructure and other structural opportunities are reinforcing the asset class’s role as a core portfolio allocation. Firms will have to continue adapting to meet demand from a broader range of investors.”
As firms scale private markets strategies to individual investors, operational complexity is emerging as the defining challenge, as asset and wealth managers adapt to serving a larger and more diverse client base. Nearly eight in ten respondents cite liquidity management as a key challenge, with specific pressure points including redemption management, cash forecasting and liquidity stress testing as firms adapt to more dynamic investor flows. Compliance, reporting and investor servicing are also increasing as firms move beyond institutional client bases.
“Democratization is raising the bar for how private markets are structured and supported,” said Scott Carpenter, global head of Alternatives at State Street. “Delivering these strategies at scale requires more than product innovation. It requires the infrastructure, data and operational capabilities to provide transparency, manage liquidity and meet the expectations of a very different investor base.”
The study also highlights a clear consensus on distribution. Wealth management platforms are viewed as the primary channel for private markets access, while defined contribution structures remain a secondary pathway for most firms. This reflects both investor suitability considerations and the role of financial advisors in navigating more complex investment structures.
The survey also reveals that institutional investors’ demand for private markets remains notably resilient despite ongoing market and geopolitical uncertainty. Demand is being driven primarily by return expectations and diversification benefits, reinforcing private markets’ role as a core allocation in long-term portfolio construction.
Taken together, the findings point to an industry entering a more demanding phase where growth, resilience and innovation must be matched by operational discipline and scalability. Private markets are no longer defined solely by access. Instead, competitive advantage is shifting toward firms that can deliver quick liquidity frameworks, transparency and performance at scale across both institutional and individual investors.
Click here to download the findings in State Street’s 2026 Private Markets Survey.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With US$54.5 trillion in assets under custody and/or administration and US$5.6 trillion* in assets under management as of March 31, 2026, State Street operates globally in more than 100 geographic markets and employs approximately 51,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of March 31, 2026 includes approximately US$184 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated.
State Street® SPDR® Portfolio Nasdaq® 100 ETF (QNDX) offers access to large-cap market leaders at 10 bps
BOSTON--(BUSINESS WIRE)--State Street Investment Management today announced the launch of the State Street® SPDR® Portfolio Nasdaq® 100 ETF (QNDX), designed to track the Nasdaq-100 Index® and provide investors with a low-cost, growth-oriented core equity allocation. Priced at 10 bps, investors may consider QNDX a foundational portfolio building block across market cycles.
The Nasdaq-100 Index® is designed to represent 100 of the largest Nasdaq-listed non-financial companies, offering exposure to sectors that have driven durable earnings growth through changing market conditions1 — including Technology, Consumer Discretionary, and Health Care — while also capturing established companies with global scale. Nine of the 10 largest US publicly traded companies by market capitalization are in the Nasdaq-100 Index®, underscoring its role in large-cap growth leadership.2
“Investors today are looking for efficiency at the core of their portfolios without sacrificing growth potential,” said Anna Paglia, Chief Business Officer at State Street Investment Management. “QNDX has been built with this need in mind, combining low cost with exposure to many of the market’s largest and most established growth companies, which may make it a compelling core allocation rather than a tactical position.”
"We're excited to expand our partnership with State Street Investment Management through the launch of QNDX,” said Emily Spurling, Global Head of Index at Nasdaq. “The Nasdaq-100® is one of the most widely recognized benchmarks globally and home to many of the most influential companies shaping the modern economy. We’re pleased to see expanded access to the large-cap innovation and growth that define the Nasdaq-100®.”
Investors looking to complement a broad market allocation may consider adding QNDX for a more intentional growth tilt to their equity foundation. When used as a long-term allocation, QNDX may provide cost-effective growth exposure, with the potential to support capital appreciation and long-term compounding.
QNDX is the latest addition to the State Street® SPDR® Portfolio ETF suite, 26 portfolio building blocks designed to help investors build a diversified core portfolio while keeping more of what they earn. The suite provides exposure to US equity, international equity, and fixed income asset classes. As of June 15, 2026, the suite had approximately $433 billion in assets under management.3
For more information about the State Street® SPDR® Portfolio Nasdaq® 100 ETF, visit www.statestreet.com/QNDX.
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go. State Street Investment Management is the asset management arm of State Street Corporation (NYSE: STT).
*This figure is presented as of March 31, 2026 and includes ETF AUM of $1,940.32 billion USD of which approximately $184.18 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
Important Risk Information
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
The performance data quoted represents past performance. Past performance does not guarantee future results.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Returns on investments in stocks of large companies could trail the returns on investments in stocks of smaller and mid-sized companies.
Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.
Funds managed with an index investment strategy attempt to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the index or of the actual securities comprising the index. This differs from an actively managed fund, which typically seeks to outperform a benchmark index. As a result, the performance of a fund managed with an index investment strategy may be less favorable than if such fund employed an active strategy. While a fund managed with an index investment strategy seeks to track the performance of an index as closely as possible, the fund’s return may not match or achieve a high degree of correlation with the return of the index due to operating expenses, transaction costs, and cash flows.
Market Risk: The Fund’s investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile, and prices of investments can change substantially due to various factors, including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, trade policy changes or disputes, the threat or actual imposition of tariffs, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.
Intellectual Property Information:
The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P® , SPDR® , S&P 500® ,US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.
Nasdaq®, Nasdaq-100 Index®, NDX®, and Nasdaq-100® are registered trademarks of Nasdaq, Inc. Information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.
Before investing, consider the fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit www.statestreet.com/im. Read it carefully.
Not FDIC Insured - No Bank Guarantee - May Lose Value
Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, recommended Robinhood Markets, Inc. (NASDAQ:HOOD).
Lending support to his choice, Needham analyst John Todaro maintained Robinhood at Buy on June 11 and raised the price target from $85 to $97.
Don't forget to check out our premarket coverage here
Jenny Van Leeuwen Harrington, chief executive officer of Gilman Hill Asset Management, LLC, picked The Charles Schwab Corporation (NYSE:SCHW).
According to recent news, Charles Schwab reported total client assets of $13.14 trillion at the end of May, up 27% year over year on June 12.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, named State Street Corporation (NYSE:STT), a financial stock.
On the earnings front, State Street said it will announce its second-quarter financial results on Thursday, July 16. Analysts expect the company to report quarterly earnings at $3.15 per share on revenue of $3.77 billion.
Price Action:
Robinhood shares fell 1.4% to close at $96.71 on Tuesday. iShares U.S. Industrials ETF rose 0.9% during the session. Charles Schwab shares climbed 3% to close at $93.67 on Tuesday. State Street shares gained 2.3% to settle at $171.29. Photo via Shutterstock
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On June 18, 2026, we delve into the DCF analysis for State Street Corp STT , a company that has demonstrated significant price performance recently. Over the past year, STT has seen its stock price increase by 82.4%, reflecting a strong upward trend. Here are some key points to consider:
DCF Earnings-based intrinsic value of $142.40 compared to the current price of $171.10 (margin of safety: -20.1%) DCF FCF-based intrinsic value of $-177.25 (significantly overvalued) GF Score™ of 76/100, indicating a reliable assessment of the DCF inputs What Is STT Worth? DCF Earnings-Based Model The DCF earnings-based model for State Street Corp utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage accounts for the growth phase, where earnings per share (EPS) is expected to grow at a rate of 6.6% annually for the next ten years. The second stage considers a terminal growth rate of 4% for the subsequent ten years. Below are the assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $11.12 10-Year Growth Rate 6.6% 10-Year Treasury Rate 4.46% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.6%, discounted at 11% $89.62 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $52.78 Intrinsic Value Growth + Terminal $142.40 With the current price of $171.10, the intrinsic value of $142.40 indicates that the stock is fairly valued, with a margin of safety of -20.1%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For more details, you can visit the STT DCF Calculator.
What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the free cash flow (FCF) DCF model yields an intrinsic value of $-177.25. This significant discrepancy compared to the earnings-based valuation suggests that the two models do not agree on the valuation of State Street Corp. The FCF model indicates that the stock is significantly overvalued, with a margin of safety of -100.0%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for State Street Corp is calculated at $113.59, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, we see a consensus that indicates STT is overvalued based on the DCF FCF model, while the earnings-based model suggests it is fairly valued. For further insights, visit the GF Value™ page.
What Does STT's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006 to 2021). Below is the breakdown of STT's GF Score™:
Metric Rating GF Score™ 76/100 Financial Strength 4/10 Profitability 6/10 Growth 8/10 Valuation 3/10 Momentum 9/10 With a predictability rank of 2/5 stars, it is important to note that higher predictability ratings generally indicate more reliable DCF estimates for this stock. For more information, visit the STT stock page.
Key Assumptions and Limitations It is crucial to understand that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as STT's 2/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the overall verdict for State Street Corp is that it is currently overvalued based on the FCF model, while the earnings-based model suggests it is fairly valued. Given the differing perspectives, investors should exercise caution. For the full DCF analysis, visit the STT DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is STT's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Roundhill Investments Generative AI & Technology ETF offers a significantly higher 1-year total return and trailing-12-month dividend yield than State Street Technology Select Sector SPDR ETF State Street Technology Select Sector SPDR ETF features a much lower expense ratio and significantly larger assets under management Roundhill Investments Generative AI & Technology ETF is more volatile: it carries a higher beta profile and experienced a steeper maximum drawdown than State Street Technology Select Sector SPDR ETF
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
State Street Corporation (STT - Free Report) is headquartered in Boston, and is in the Finance sector. The stock has seen a price change of 30.46% since the start of the year. Currently paying a dividend of $0.84 per share, the company has a dividend yield of 2%. In comparison, the Banks - Major Regional industry's yield is 2.7%, while the S&P 500's yield is 1.43%.
Looking at dividend growth, the company's current annualized dividend of $3.36 is up 7.7% from last year. Over the last 5 years, State Street Corporation has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.16%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. State Street's current payout ratio is 30%, meaning it paid out 30% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for STT for this fiscal year. The Zacks Consensus Estimate for 2026 is $12.35 per share, with earnings expected to increase 19.90% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that STT is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
The iShares Global REIT ETF (REET +0.77%) offers low-cost, global real estate exposure, while the State Street SPDR Dow Jones REIT ETF (RWR +1.31%) provides a more concentrated, higher-cost portfolio strictly focused on the United States.
Investors often turn to real estate investment trusts (REITs) for reliable income and potential protection against inflation through physical assets. While the iShares fund serves as a broad-market tool for capturing global property trends across multiple continents, the State Street fund homes in specifically on the domestic market, tracking the Dow Jones U.S. Select REIT Capped Index to reflect American property performance.
Snapshot (cost & size)MetricREETRWRIssueriSharesSPDRExpense ratio0.14%0.25%1-yr return (as of June 18, 2026)9.3%13.1%Dividend yield3.4%3.4%Beta0.991.01AUM$4.9 billion$1.8 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is the cheapers option for long-term holders, with an expense ratio of 0.14%. Their dividend yields are the same.
Performance & risk comparisonMetricREETRWRMax drawdown (5 yr)(32.20%)(32.60%)Growth of $1,000 over 5 years (total return)$1,145$1,258What's insideThe State Street fund focuses almost exclusively on U.S. real estate. Its 99 holdings are more concentrated than its global peer; its largest positions include Prologis (PLD +0.99%) at 9.91%, Welltower (WELL +2.94%) at 9.50%, and Equinix (EQIX +0.00%) at 4.75%. This fund, launched in 2001, manages $1.8 billion in AUM and has a trailing-12-month dividend payout of $3.73 per share.
In comparison, the iShares fund holds 319 positions, spanning developed and emerging markets globally. Its portfolio is 100% invested in real estate, with its largest positions including Welltower at 8.07%, Prologis at 7.45%, and Equinix at 5.88%. Launched in 2014, the iShares fund manages $4.9 billion in AUM and has a trailing-12-month dividend of $0.93 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThese ETFs have comparable recent returns and dividend yields. The State Street fund has a slightly higher expense ratio, but I don't think it's meaningful enough to influence whether someone should invest in it.
One area of differentiation that stands out to me, however, is concentration risk. RWR holds far fewer stocks than REET, and its top five holdings make up roughly 33% of the portfolio. Those five equities will have an outsize impact on the fund's performance. The State Street ETF is also smaller overall in terms of assets under management, and its average trading volume is a fraction of its peer's.
Given the concentration risk and much lower liquidity, I'd be more inclined to invest in REET than RWR.
New solution is among the first GENIUS Act-aligned government money market funds to support stablecoin issuance at scale
BOSTON--(BUSINESS WIRE)--State Street Investment Management today announced the launch of the State Street Stablecoin Reserves Money Market Fund, a GENIUS Act-aligned registered Rule 2a-7 government money market fund designed specifically for the unique needs of stablecoin issuers. The Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act, passed into law by the United States Congress in July 2025, creates a clearer regulatory framework to utilize money market funds registered under the Investment Company Act of 1940 to back the issuance of stablecoins. The fund was designed and built to comply with the GENIUS Act.
State Street Bank and Trust Company, and Anchorage Digital, home to the first federally chartered crypto bank in the United States, are initial investors in the fund.
“For more than 40 years, the cash management business of State Street Investment Management has delivered liquidity solutions to the world’s largest and most sophisticated institutional investors,” said Yie-Hsin Hung, president and chief executive officer of State Street Investment Management. “With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested. State Street Investment Management’s time-tested approach to cash management focuses on principal preservation, liquidity and income, and we’re excited to partner with Anchorage Digital to bring these capabilities to the digital assets space.”
“Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important,” said Nathan McCauley, co-founder and chief executive officer of Anchorage Digital. “As the GENIUS Act establishes a clear regulatory framework, this fund brings together State Street Investment Management’s decades of cash management expertise with Anchorage Digital’s regulated stablecoin infrastructure to help advance a more resilient, institutional-grade foundation for stablecoin reserves.”
The fund launches as the stablecoin market enters a new phase of growth, with global stablecoin issuance projected to reach between $1.9 trillion and $4 trillion by 2030 as institutional adoption accelerates.* This expansion is expected to drive an increase in stablecoin reserves backed by government money market fund assets, creating new opportunities for State Street’s institutional liquidity management solutions to back the digital ecosystem.
The launch builds on the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity solution enabling 24/7 onchain cash management via stablecoins, subject to the availability of stablecoin in the fund’s portfolio, and advances State Street Investment Management’s broader strategy of enabling seamless, institutional-grade participation in tokenized markets.
For more information about the State Street Stablecoin Reserves Money Market Fund, please visit: https://www.ssga.com/us/en/institutional/cash/state-street-stablecoin-reserves-money-market-fund-capital-class-sscxx.
*Citi Institute, Stablecoins 2030: Web3 to Wall Street, September 2025.
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go. State Street Investment Management is the asset management arm of State Street Corporation (NYSE: STT).
*This figure is presented as of March 31, 2026 and includes ETF AUM of $1,940.32 billion USD of which approximately $184.18 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
About Anchorage Digital
Anchorage Digital is a global crypto platform that enables institutions to participate in digital assets through trading, staking, custody, governance, settlement, stablecoin issuance, and the industry’s leading security infrastructure. Home to Anchorage Digital Bank N.A., the first federally chartered crypto bank in the U.S., Anchorage Digital also serves institutions through Anchorage Digital Singapore, which is licensed by the Monetary Authority of Singapore; Anchorage Digital NY, which holds a BitLicense from the New York Department of Financial Services; and self-custody wallet Porto by Anchorage Digital. Anchorage Digital Bank also offers fiat custody services through the use of an FDIC-insured, licensed sub-custodian. Anchorage Digital is funded by leading institutions including Andreessen Horowitz, GIC, Goldman Sachs, KKR, and Visa, with a valuation of $4.2 billion. Founded in 2017 in San Francisco, California, Anchorage Digital has offices in New York, New York; Porto, Portugal; Singapore; and Sioux Falls, South Dakota. Learn more at anchorage.com, on X @Anchorage, and on LinkedIn.
Important Risk Information
Risk of Loss. No guarantee or representation is made that the Fund’s investment program will be successful. Investment results may vary substantially over time. No assurance can be made that profits will be achieved and there is the potential for substantial or complete loss of your investment.
Low Short-Term Interest Rates. During market conditions in which short-term interest rates are at low levels, the Fund’s yield can be very low. During these conditions, it is possible that the Fund will generate an insufficient amount of income to pay its expenses, and that it may have a negative yield (i.e., it may lose money on an operating basis).
Focused Investment Risk. The Fund is expected to invest a large percentage of its assets in treasury securities, which may result in more risk or greater volatility in returns than if the Fund’s investments were less focused.
U.S. Treasury Obligations Risk. U.S. Treasury obligations may differ from other securities in their interest rates, maturities, times of issuance and other characteristics. Similar to other issuers, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s U.S. Treasury obligations to decline.
Repurchase Agreement Risk. Repurchase agreements may be viewed as loans made by the Fund that are collateralized by the securities subject to repurchase. The Fund’s investment return on such transactions will depend on the counterparty’s willingness and ability to perform its obligations under a repurchase agreement. If the Fund’s counterparty should default on its obligations and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may realize a loss.
Money Market Fund Risk: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
The Fund may redeem investors that do not satisfy the eligibility requirements for retail money market fund investors. The Fund will provide advance written notification of its intent to make any such involuntary redemptions to the applicable shareholders, which will include more specific information about timing. Neither the Fund nor the Adviser will be responsible for any loss in an investor’s account or tax liability resulting from an involuntary redemption.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the fund.
Before investing, consider the fund’s investment objectives, risks, charges and expenses. All statements are subject to the definitive offering documents of the fund, available from State Street Global Advisors Funds Distributors, LLC.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member FINRA, SIPC
State Street Global Advisors (SSGA) is now State Street Investment Management. Please go to statestreet.com/investment-management for more information.
State Street Investment Management today announced the launch of the State Street Stablecoin Reserves Money Market Fund, a GENIUS Act-aligned registered Rule 2a-7 government money market fund designed specifically for the unique needs of stablecoin issuers. The Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act, passed into law by the United States Congress in July 2025, creates a clearer regulatory framework to utilize money market funds registered under the Investment Company Act of 1940 to back the issuance of stablecoins. The fund was designed and built to comply with the GENIUS Act.
State Street Bank and Trust Company, and Anchorage Digital, home to the first federally chartered crypto bank in the United States, are initial investors in the fund.
“For more than 40 years, the cash management business of State Street Investment Management has delivered liquidity solutions to the world’s largest and most sophisticated institutional investors,” said Yie-Hsin Hung, president and chief executive officer of State Street Investment Management. “With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested. State Street Investment Management’s time-tested approach to cash management focuses on principal preservation, liquidity and income, and we’re excited to partner with Anchorage Digital to bring these capabilities to the digital assets space.”
“Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important,” said Nathan McCauley, co-founder and chief executive officer of Anchorage Digital. “As the GENIUS Act establishes a clear regulatory framework, this fund brings together State Street Investment Management’s decades of cash management expertise with Anchorage Digital’s regulated stablecoin infrastructure to help advance a more resilient, institutional-grade foundation for stablecoin reserves.”
The fund launches as the stablecoin market enters a new phase of growth, with global stablecoin issuance projected to reach between $1.9 trillion and $4 trillion by 2030 as institutional adoption accelerates.* This expansion is expected to drive an increase in stablecoin reserves backed by government money market fund assets, creating new opportunities for State Street’s institutional liquidity management solutions to back the digital ecosystem.
The launch builds on the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity solution enabling 24/7 onchain cash management via stablecoins, subject to the availability of stablecoin in the fund’s portfolio, and advances State Street Investment Management’s broader strategy of enabling seamless, institutional-grade participation in tokenized markets.
For more information about the State Street Stablecoin Reserves Money Market Fund, please visit: https://www.ssga.com/us/en/institutional/cash/state-street-stablecoin-reserves-money-market-fund-capital-class-sscxx.
*Citi Institute, Stablecoins 2030: Web3 to Wall Street, September 2025.
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go. State Street Investment Management is the asset management arm of State Street Corporation (NYSE: STT).
*This figure is presented as of March 31, 2026 and includes ETF AUM of $1,940.32 billion USD of which approximately $184.18 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
About Anchorage Digital
Anchorage Digital is a global crypto platform that enables institutions to participate in digital assets through trading, staking, custody, governance, settlement, stablecoin issuance, and the industry’s leading security infrastructure. Home to Anchorage Digital Bank N.A., the first federally chartered crypto bank in the U.S., Anchorage Digital also serves institutions through Anchorage Digital Singapore, which is licensed by the Monetary Authority of Singapore; Anchorage Digital NY, which holds a BitLicense from the New York Department of Financial Services; and self-custody wallet Porto by Anchorage Digital. Anchorage Digital Bank also offers fiat custody services through the use of an FDIC-insured, licensed sub-custodian. Anchorage Digital is funded by leading institutions including Andreessen Horowitz, GIC, Goldman Sachs, KKR, and Visa, with a valuation of $4.2 billion. Founded in 2017 in San Francisco, California, Anchorage Digital has offices in New York, New York; Porto, Portugal; Singapore; and Sioux Falls, South Dakota. Learn more at anchorage.com, on X @Anchorage, and on LinkedIn.
Important Risk Information
Risk of Loss. No guarantee or representation is made that the Fund’s investment program will be successful. Investment results may vary substantially over time. No assurance can be made that profits will be achieved and there is the potential for substantial or complete loss of your investment.
Low Short-Term Interest Rates. During market conditions in which short-term interest rates are at low levels, the Fund’s yield can be very low. During these conditions, it is possible that the Fund will generate an insufficient amount of income to pay its expenses, and that it may have a negative yield (i.e., it may lose money on an operating basis).
Focused Investment Risk. The Fund is expected to invest a large percentage of its assets in treasury securities, which may result in more risk or greater volatility in returns than if the Fund’s investments were less focused.
U.S. Treasury Obligations Risk. U.S. Treasury obligations may differ from other securities in their interest rates, maturities, times of issuance and other characteristics. Similar to other issuers, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s U.S. Treasury obligations to decline.
Repurchase Agreement Risk. Repurchase agreements may be viewed as loans made by the Fund that are collateralized by the securities subject to repurchase. The Fund’s investment return on such transactions will depend on the counterparty’s willingness and ability to perform its obligations under a repurchase agreement. If the Fund’s counterparty should default on its obligations and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may realize a loss.
Money Market Fund Risk: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
The Fund may redeem investors that do not satisfy the eligibility requirements for retail money market fund investors. The Fund will provide advance written notification of its intent to make any such involuntary redemptions to the applicable shareholders, which will include more specific information about timing. Neither the Fund nor the Adviser will be responsible for any loss in an investor’s account or tax liability resulting from an involuntary redemption.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the fund.
Before investing, consider the fund’s investment objectives, risks, charges and expenses. All statements are subject to the definitive offering documents of the fund, available from State Street Global Advisors Funds Distributors, LLC.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member FINRA, SIPC
State Street Global Advisors (SSGA) is now State Street Investment Management. Please go to statestreet.com/investment-management for more information.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at State Street Corporation (STT - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. State Street Corporation currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if STT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For STT, shares are up 3.64% over the past week while the Zacks Banks - Major Regional industry is up 3.86% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.87% compares favorably with the industry's 6.41% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of State Street Corporation have increased 35.82% over the past quarter, and have gained 71.84% in the last year. On the other hand, the S&P 500 has only moved 14.27% and 27.78%, respectively.
Investors should also pay attention to STT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STT is currently averaging 1,861,858 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with STT.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STT's consensus estimate, increasing from $11.84 to $12.35 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that STT is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep State Street Corporation on your short list.
