MSCI strengthens leadership position in Factor Indexing…….
Diana Tidd, MSCI’s Head of Index Products
More than $170 billion in assets benchmarked to MSCI’s Factor indexes
MSCI Inc. a leading index and analytics provider worldwide, reports continued strong demand for factor indexes. Global factor based Exchange Traded Funds (ETFs) attracted nearly $51 billion in net cash flows, with $17.5 billion of those fund flows going to ETFs linked to MSCI’s factor indexes year to date through September 30th 2016.1
Overall, MSCI factor indexes have grown to attract more than $170 billion in benchmarked assets globally.2
MSCI also reported significant growth in assets specifically linked to its minimum volatility indexes, which grew by 122% to $35.4 billion year-over-year1. Overall, 68% of the total equity ETF assets among low volatility ETFs globally are linked to MSCI indexes, making MSCI the leader in this index category. 1
With more than 850 equity ETFs tracking MSCI indexes globally, and over 175 equity ETFs tracking MSCI’s Factor indexes1, more equity ETFs track MSCI’s indexes than those of any other index provider.
“This has been a monumental year for MSCI based on the record number of ETFs that track our indexes,” said Diana Tidd, MSCI’s Head of Index Products. “Our innovative factor index offering, combined with the strength of our top quality brand, continue to make MSCI indexes the first choice of ETF providers around the world.”
MSCI offers a suite of systematic rules-based indexes designed to represent the return of factors which have historically earned a risk premium over long periods of time – such as low volatility, value, low size, high dividend yield, quality and momentum. Factor indexes target stocks with certain characteristics and are designed for use in traditional, passive and active mandates.
MSCI has been at the forefront of identifying systematic drivers of market return and volatility through our research of factors since the 1970s. The MSCI suite of analytics includes: Barra multi-asset class and factor models, pricing models, performance attribution and portfolio construction, and stress testing capabilities.
1 Source: Bloomberg and MSCI data, as of September 30 2016. Data calculated by aggregating the number of share classes of all exchange traded funds tracking an MSCI index, as identified by separate Bloomberg tickers using MSCI classification of factor indexes. Only primary listings, and not cross-listings, are counted.
2 Source: Bloomberg, eVestment, Morningstar and MSCI data, as of June 30 2016