State Street Investment Management announces that today, 29 January 2026, the State Street World Small Cap Enhanced Active Equity UCITS ETF (Acc) debuts on the London Stock Exchange.
By ETFWorld.co.uk
Anna Paglia, Chief Business Officer at State Street Investment Management
The new actively managed fund, with ticker SWSC and ISIN code IE000F2IX674, aims to outperform the global small-cap equity index by integrating a quantitative selection model and a series of exclusions based on environmental, social and governance (ESG) criteria.
Product details
The ETF is structured as an Irish investment fund (UCITS) and is classified under Article 8 of the SFDR, indicating a promotion of environmental or social characteristics. In addition to Italy, the fund is registered for marketing in eleven other European countries, including Austria, France, Germany and Spain.
Investment Objective and Strategy
The stated objective of the fund is to generate a return higher than that of small-cap equities in global developed markets. The benchmark is the MSCI World Small Cap Index.
The strategy is distinguished by a two-pronged approach:
- Active Quantitative Management: Stock selection is based on a proprietary alpha model that analyses factors such as company quality, valuation, market sentiment and catalyst themes. The model also incorporates sector, country and macroeconomic forecasts.
- Mandatory ESG Screening: The investment policy requires the exclusion of companies involved in controversial weapons, civilian weapons, thermal coal, Arctic oil and gas exploration, tar sands extraction and tobacco. Companies that are not aligned with the United Nations Global Compact (UNGC) Principles and those associated with serious ESG controversies are also excluded.
Technical Characteristics and Portfolio
As of 27 January 2026, the fund has the following characteristics:
- Number of securities in the portfolio: 416
- Average market capitalisation of companies: $6.2 billion.
- Main sectors: The largest weighting is in Industrials (21.98%), followed by Financials (15.06%) and Technology (13.70%).
- Top ten positions: These include, among others, Popular Inc., Donaldson Company Inc. and EnerSys, none of which exceed a weighting of 1.2% of the portfolio.
- Assets under management: $85.88 million.
Context and Analysis
The launch of SWSC comes amid a rationalisation of State Street’s ETF offering, which in November 2025 announced the closure of four niche funds to focus on core products. This new active ETF complements the issuer’s passive offering in the global small-cap segment.
The choice of a TER of 0.45% for an active fund is competitive, especially when compared to the costs of similar but passively managed products.
The State Street World Small Cap Enhanced Active Equity UCITS ETF is intended as a tool for institutional and private investors seeking exposure to the global small-cap segment through an active and systematic process. The product combines the aspiration to outperform with a defined ESG exclusion framework, aiming to capture the interest of a market that is increasingly focused on sustainability. Its performance will be monitored against the benchmark index and existing competitors in the medium to long term.
| ETF | State Street World Small Cap Enhanced Active Equity UCITS ETF (Acc) |
| ISIN | IE000F2IX674 |
| SEDOL | BSSBCK4 |
| Currency | USD |
| Management Fee | 0.45% |
| Dividends | Capitalisation |
Source: ETFWorld.co.uk
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