Regulator’s push for index transparency will bring about fundamental changes in business models for ETF issuers, index providers and many active funds
ESMA’s review of strategy indices hasn't attracted as much attention as its focus on other areas of the ETF industry. But it is worth following closely
Benchmarks that use algorithmic strategies to capture spikes in equity market volatility are all the rage. But they don’t come cheap.
More ETF buyers are shunning traditional market-cap-weighted benchmarks, turning instead to alternative options.
Demand for corporate bond and high yield ETFs has surged as investors seek higher returns. But they may also get higher tracking errors.
The last 10 years have seen a transformation in the index business, and the line between benchmark provider and ETF issuer is looking increasingly blurred.
While most benchmark indices have simple structures, strategy indices often come with embedded complexity and extra costs.
European regulators’ push for index transparency threatens to make some benchmark providers' business models unsustainable