Exchange traded funds that observe MSCI indices have now amassed greater than $1 trillion in proper
Exchange traded funds that observe MSCI indices have now amassed greater than $1 trillion in property beneath administration.
ETFs linked to MSCI-based indices have attracted $1 trillion as of November 16, 2020. This milestone demonstrates the widespread adoption and use of MSCI indices and the worldwide funding group’s confidence within the high quality and representativeness of MSCI’s indexes, associated instruments and shopper assist, in keeping with a current MSCI notice.
“This milestone displays MSCI’s place as a number one supplier of index options to ETF suppliers globally. We proceed to see quick adoption of our indexes as institutional traders flip to them to assist perceive the worldwide investable universe, construct sustainable, diversified portfolios, and determine long-term monetary dangers and alternatives,” Diana Tidd, MSCI’s Head of Index, acknowledged.
Asset progress in fairness ETFs linked to MSCI’s indexes has been fueled by sturdy investor demand for clear and liquid merchandise to entry international fairness markets, with a more moderen spherical of inflows pushed by the elevated consideration on environmental, social, and governance, or ESG, components and local weather concerns, together with the heightened curiosity in issue index-linked methods.
“The funding trade continues an amazing transformation in the direction of new alternatives together with new geographies, new asset courses, new kinds and techniques, and extra sustainable investing. MSCI is positioned to be the change agent that helps traders keep on the forefront of that transformation and on the environment friendly frontier of threat and return, in addition to the accomplice of alternative for traders around the globe who’re looking for publicity to the world’s capital markets and want to know the chance set,” Henry Fernandez, MSCI’s Chairman and CEO, mentioned in a notice.
For instance, MSCI believes ESG, local weather, components, thematic, and glued earnings funding will gas the subsequent leg of progress within the ETF trade. ESG and climate-related fairness ETF linked to MSCI indices have attracted over $71 billion in property, with seven of the ten largest fairness ESG ETFs within the U.S. all primarily based on MSCI indices. Moreover, there are over 1,500 fairness and glued earnings ESG and local weather indices that make the most of MSCI ESG Analysis scores and information, and the demand for traditional and customized options on this space is rising.
“Over the previous 50 years, MSCI has been a pacesetter in offering indexes and different research-driven, technology-enabled instruments and options for international traders, initially with market-cap indexes throughout geographies and industries. By specializing in establishing an innovation mindset, we now have empowered our groups to discover inventive, sturdy and holistic instruments and options to assist our shoppers make higher knowledgeable funding choices,” Baer Pettit, MSCI’s President and COO, mentioned.
For extra information, data, and technique, go to the Fairness ETF Channel.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.