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3 State Street Mutual Funds Positioned for Strong Performance

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State Street Global Advisors traces its roots to 1978, when it was founded in Boston as the investment management arm of State Street Corporation (STT - Free Report) . Initially, the firm offered a small lineup of index and short-term funds, covering domestic equity, international equity and cash.

On Oct. 17, STT came out with third-quarter 2025 adjusted earnings of $2.78/share, beating the Zacks Consensus Estimate of $2.62. This compares to earnings of $2.26/share a year ago. Over the last four quarters, the company surpassed consensus EPS estimates each time. The company has also posted revenues of $3.55 billion for the quarter, surpassing the Zacks Consensus Estimate of $3.47 billion. This compares to year-ago revenues of $3.34 billion. The company topped consensus revenue estimates three times over the last four quarters.

Over the years, the company has diversified its mutual funds and ETFs to cover a broad range of strategies that include global equities, fixed income and actively managed funds. This year, the firm has entered a new chapter by rebranding itself as State Street Investment Management. In late 2024, the firm forged a strategic relationship with the prominent global macro firm Bridgewater Associates, a move aimed at broadening access to alternative investment strategies for a wider range of clients.

The legacy of State Street is one of pioneering innovation, from revolutionizing indexing and ETFs to offering a full spectrum of mutual fund and alternative-asset strategies. Its 2025 transformation signals both respect for that legacy and readiness for the future, as State Street Investment Management seeks to reinforce its global presence, deepen client engagement and adapt to evolving investor needs.

Hence, it will be prudent to invest in State Street mutual funds if one is seeking stability and growth potential in a market that is expected to remain volatile for a while. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.

Elfun Diversified Fund (ELDFX - Free Report) obtains its U.S. equity exposure largely through a passive, index-based strategy, investing most or all assets allocated to domestic equities in the same securities that make up the S&P 500 Index.

Michael O. Martel has been the lead manager of ELDFX since 2019. The three top holdings for ELDFX are Nvidia (2.7%), Microsoft (2.6%) and Apple (2.2%).

ELDFX’s 3-year and 5-year annualized returns are 15.9% and 9.5%, respectively, and its net expense ratio is 0.33%. ELDFX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

State Street International Stock Selection (SSIPX - Free Report) invests most of its assets in equity securities of foreign issuers, including common stocks from countries and industries reflected in the MSCI EAFE Index, its benchmark, while retaining some holdings in cash and similar short-term instruments.

Adel Daghmouri has been the lead manager of SSIPX since 2023. The three top holdings for SSIPX are Novartis (2.2%), Roche (2%) and Deutsche Telekom (1.6%).

SSIPX’s 3-year and 5-year annualized returns are 23.8% and 14.9%, respectively, and its net expense ratio is 0.81%. SSIPX has a Zacks Mutual Fund Rank #1.

State Street US Core Equity Fund (SSAQX - Free Report) pursues its objective by investing the majority of its assets in equity securities of U.S. companies, including common and preferred stocks. It may also commit a smaller portion of assets to foreign securities and to various debt instruments.

Paul Nestro has been the lead manager of SSAQX since 2018. The three top holdings for SSAQX are Nvidia (8.5%), Microsoft (8.1%) and Apple (5%).

SSAQX’s 3-year and 5-year annualized returns are 23.8% and 17.5%, respectively, and its net expense ratio is 0.14%. SSAQX has a Zacks Mutual Fund Rank #1.

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