State Street adds mutual fund class to $170 billion SPYM

State Street added an institutional mutual fund share class to SPYM, its 2-basis-point S&P 500 ETF with about $170 billion in assets. The SEC's decision to allow mutual fund share classes of ETFs arrived almost a year ago, according to ETF Trends, and has helped issuers offer mutual fund shares of their most popular ETFs.

The new class trades as SPYMX, and its expense ratio has not been published. SPYM itself charges 2 basis points to track a market-cap-weighted index of 500 large and midcap companies selected by the S&P committee, and the ETF launched in 2005.

A mutual fund class could reach retirement menus and fund-only platforms that cannot hold exchange-traded shares, which is the constraint Paglia described the structure as removing. For a plan committee weighing the class, the reference price is SPYM's 2 basis points.

SPYM has pulled in $70 billion of net inflows so far in 2026, more than double its full total for last year, according to ETF Database data cited by ETF Trends. The fund returned 15.9% over the past 12 months and 23.3% over three years, and ETF Trends reports both beat their respective category averages of 12.65% and 10.4%.

SPYM is also one of the default funds for the new Trump Accounts created under the new administration.

"Retirement investors shouldn't have to choose between the operational familiarity of a mutual fund and the scale and efficiency associated with an ETF," said Anna Paglia, chief business officer at State Street Investment Management. "This structure removes a longstanding vehicle constraint and represents an important step in our commitment to bring the benefits of ETF innovation to defined contribution savers."

ETF Trends notes State Street is the latest issuer to add a share class under the structure, which it reports has helped issuers offer mutual fund shares of their most popular ETFs.