State Street Investment Management has launched the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF (UCBG) in collaboration with UC Investments, the investment arm of the University of California.
The ETF launches with a $2.5 billion investment from UC Investments, which the organizations said represents the largest-ever anchor investment for a U.S.-listed ETF launch.
UCBG seeks to track the UC Investments 90/10 Endowment Strategy Index, a custom benchmark developed by UC Investments and S&P Dow Jones Indices.
The index allocates 90% to the S&P 500 Index for broad exposure to large-cap U.S. equities and 10% to the S&P U.S. Investment Grade Corporate Bond 1-3 Year Index, which consists of U.S. dollar-denominated investment-grade corporate bonds with maturities between one and three years.
The investment approach was inspired by UC Investments’ $7.9 billion Blue and Gold Endowment Pool, a long-term public markets strategy that has been the best-performing product within UC’s $236 billion investment portfolio since its launch seven years ago.
The strategy is based on UC Investments’ view that low-cost, liquid and diversified public market exposure can generate attractive long-term returns without relying on the complexity and illiquidity typically associated with traditional institutional endowment models.
UCBG brings that approach into an ETF structure, making a version of UC’s investment philosophy available to a broader group of investors.
Previously, the strategy was available within the University of California’s institutional portfolio and directly to employees across its 10 campuses and six medical centers through the university’s retirement savings program.
The launch expands a relationship between State Street and UC Investments that has lasted more than two decades.
State Street Investment Management currently provides asset management services across portions of UC Investments’ $236 billion portfolio, including pension, endowment and other assets. State Street Bank and Trust Company also provides custody and other investment services.
State Street Investment Management manages more than $6 trillion in assets, including approximately $2.2 trillion in ETF assets as of June 30, 2026, and serves clients across 60 countries.
KEY QUOTES:
“At UC Investments, we focus on building long term, cost-effective portfolios to support our hundreds of thousands of UC students, faculty, staff, and alumni for generations to come. This record-breaking ETF launch makes our institutional investment philosophy available to a broader community of investors through the transparency, efficiency and accessibility of the ETF structure, while staying true to the principles that have guided our investment approach.”
Jagdeep Singh Bachher, Chief Investment Officer of the University of California
“Our relationship with UC Investments spans more than two decades and has always been driven by innovation. With this launch, we are bringing an endowment-inspired strategy to a far broader range of investors, delivered with the low cost and transparency that make ETFs so powerful.”
Ronald O’Hanley, Chairman and Chief Executive Officer of State Street Corporation
“This partnership demonstrates what’s possible when a leading asset owner and asset manager work together to turn a successful institutional investment strategy into an accessible solution for investors. It reflects our commitment to helping clients extend their investment priorities to new markets and investor communities.”
Yie-Hsin Hung, President and Chief Executive Officer of State Street Investment Management