Self-Indexed ETF Definition

Learn the definition of self-indexed ETF and other ETF terminology from the etf.com glossary.

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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Self-Indexed ETF

A Self-indexed ETF is an exchange-traded fund that tracks an index created and maintained by the ETF issuer itself, rather than tracking an index provided by an independent third-party index provider, such as S&P Dow Jones Indices, MSCI, or FTSE Russell. In is innovative approach, the ETF issuer defines the index methodology, selects constituent securities and crafts a unique framework tailored to specific investment objectives. While self-indexing introduces an element of flexibility and creativity, investors should scrutinize the transparency, robustness, and relevance of the custom index to ensure alignment with their investment goals. Self-indexed ETFs offer a departure from traditional indexing, inviting investors to explore innovative strategies that may not conform to conventional market benchmarks.

Related Terms

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.