State Street’s Next Revolution: How ETFs Are Opening the Door to Alternative Investing for Every Advisor

At the 2025 Schwab IMPACT Conference in Denver, the conversation around portfolio resilience, innovation, and accessibility took center stage. For many financial advisors, the search for new ways to enhance diversification and responsiveness to changing markets has become central to client strategy. State Street Global Advisors, a firm long associated with ETF innovation, is once again redefining opportunity—this time by opening the door to alternative investments through the ETF structure.

Allison Bonds Mazza, Head of US Wealth at State Street Investment Management, explained how the firm’s deep history of innovation naturally led to this next chapter. “One of the hallmarks of State Street is that we are passionate about innovation and democratizing access,” she said. “That dates back to the launch of the first ever ETF in the United States—SPY—now almost 33 years ago. What we are very focused on today is democratizing access to alternatives.”

Partnering to Bring Institutional Caliber to Every Investor

One of State Street’s latest steps in this direction is its partnership with Bridgewater Associates, one of the world’s most respected names in institutional investing. The two firms joined forces in March 2025 to launch the SPDR Bridgewater All Weather ETF (ticker: ALLW), designed to bring Bridgewater’s time-tested risk parity approach to a far broader audience.

“For many, many years, Bridgewater’s All Weather strategy was only available to institutions or to ultra-wealthy individuals,” Mazza explained. “With All Weather, we are now democratizing access to this strategy so it can be available to every investor with a click of a button through this ETF.”

The All Weather strategy is built around a diversified, global, multi-asset portfolio designed to perform in varying macroeconomic conditions—high or low growth, rising or falling inflation. That adaptability sits at the heart of why advisors are increasingly drawn to alternative exposures as part of resilient portfolio design.

A Legacy of Innovation and Access

The innovation behind ALLW aligns naturally with State Street’s long track record of turning complex strategies into accessible, liquid, and transparent vehicles for investors. Mazza pointed out that the company’s history of “firsts” in ETF innovation stretches back more than three decades.

“Our public track record of democratizing alternatives really dates back over 20 years to the launch of GLD in partnership with the World Gold Council,” she said. “At the time, that was groundbreaking—to have access to gold in an ETF wrapper. We’re continuing to ask: what are other areas where we can work with partners to democratize access?”

That pioneering move made exposure to gold accessible to a wide range of investors for the first time and helped catalyze the precious metal’s role in strategic asset allocation. Today, State Street applies that same pioneering spirit to complex exposure areas like risk parity, structured strategies, and private-market proxies.

Education and Transparency: Keys to Advisor Confidence

While alternatives are gaining attention, many advisors remain cautious—often due to perceived complexity or limited historical accessibility. Mazza noted that ETFs are ideally suited to overcome those barriers thanks to their transparency and daily liquidity.

“One of the hallmarks of ETFs is that they are transparent,” she said. “At any given time, you can see all of the holdings. That’s very different from other investment vehicles where you might see the top ten holdings a few times a year.”

State Street is pairing that transparency with proactive education. “We are leading with education and with high caliber partners,” Mazza explained. “Whether it’s Bridgewater, Blackstone, Apollo, or the World Gold Council—partnering with the best managers helps unlock access in a way that builds advisor confidence.”

She also challenged the notion that advisors are uneasy about alternatives. “I’m not so sure advisors are uncomfortable with alternatives—it’s just been difficult to get exposure to them,” Mazza said. “A strategy like All Weather in an ETF wrapper is the easy button for alternatives. It’s going to be the gateway for advisors to get their clients exposure to alternative asset classes.”

Building More Durable Portfolios

For advisors seeking to future-proof client portfolios, evolving beyond the traditional 60/40 allocation remains a key consideration. Mazza believes that the traditional model is due for a refresh, reflecting both structural changes in markets and investor sentiment.

“We think that the starting point for today’s portfolio probably isn’t 60/40 anymore,” she noted. “It probably looks more like 50/30/10—with that 10% being exposure to a diversified basket of alternatives.”

The goal, she added, is to design durable portfolios positioned for what comes next. “There’s a lot of sentiment that the previous 15 years are probably not indicative of what the next 15 years will look like. While markets are at all-time highs, there’s still a lot of uncertainty—around rates, trade, deficits, and debt. Advisors are looking to build in some resiliency, and alternatives can be a way to do that.”

Constant Innovation to Serve Advisors

Innovation remains part of State Street’s DNA. In just the past two years, the firm has launched nearly 200 products worldwide—each expanding investor access to new exposures, risk profiles, or market segments.

“We’re really proud of our track record of innovation,” Mazza said. “Whether that’s SPY, the first ETF ever launched in the US, or GLD, the first gold ETF, our focus has always been on leveling the playing field for every investor. This year alone, we’ve launched over 100 new products globally—and we’re constantly looking at new ways to innovate.”

That relentless focus on expanding access is what sets State Street apart for today’s advisors. By reimagining how alternative strategies can be delivered through liquid, transparent vehicles, the firm continues to bridge the institutional and retail worlds—making sophisticated portfolio tools available to a much broader base of investors.

Why This Matters for Financial Advisors

For financial advisors, democratization of alternatives represents both an opportunity and a competitive advantage. Clients seeking diversified returns and risk mitigation are increasingly open to alternative exposures, but they rely on their advisors to identify the best path. ETF-based delivery solves the historical hurdles—minimums, paperwork, and lockups—while maintaining exposure quality.

Strategies like the SPDR Bridgewater All Weather ETF illustrate how advisors can add a new dimension to client portfolios with instant accessibility, institutional partnership, and fully transparent holdings. That combination can help redefine what balanced portfolios look like for the decade ahead.

Mazza put it best: “We’re always looking for ways to help advisors build more resilient, more durable portfolios—and alternatives are a way to do that. Delivering them through an ETF vehicle levels the playing field for every investor and helps drive better outcomes for all.”

For financial advisors navigating the next market cycle, that message resonates clearly—true resilience comes not just from diversification, but from democratization.

To learn more about State Street’s innovative ETF lineup and its approach to democratizing alternative strategies, visit State Street Global Advisors.