Institutional investors often do not take full advantage of exchange-traded funds, according to a study released Monday by State Street Corp., one of the largest providers of ETFs in the world.

State Street's "Vision Focus" report gave examples of ways for institutional investors to use ETFs, including cash equitization, completion and core-satellite strategies, strategic asset allocation and tax management.

The report also highlighted regional differences in the development of the ETF market and discussed recent regulatory changes.

"While product innovation has been significant throughout the industry over the past two decades, the rush of new products has been a source of confusion, even for seasoned institutional investors," said James Ross, a senior managing director at State Street Global Advisors.

He said that ETFs with "reasonable spreads, sufficient liquidity, low expenses, minimal tracking error and well-constructed underlying indices provide the best prospects for success."

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