State Street SPDR ETF gains from asset managers; bulge bracket banks poised for AI, IPO deal growth

The State Street SPDR S&P Capital Markets ETF benefits from rising assets under management in strong markets, offering exposure to asset managers and custody banks. However, some asset managers face limited upside and pricing pressures, with many trading above a 10x PE ratio. Large advisory and bulge bracket banks like Goldman Sachs, Morgan Stanley, and JPMorgan are better positioned to capitalize on potential AI-related deals and IPO activity linked to strong market conditions. Direct exposure to these major advisory firms may offer more tactical investment opportunities than broader ETFs like KCE, which is only modestly leveraged and not particularly cheap.