Nasdaq OMX Group (NasdaqGM: NDAQ) and S&P Dow Jones Indices are shopping for acquisitions to bolster their index offerings in what could be a sign of an imminent wave of consolidation for indexing space.
Executives from both companies “told Reuters in recent interviews that they would be interested in looking at bidding on index businesses that come to market,” reports Jessica Toonkel for Reuters.
Last week, Reuters reported that Northwestern Mutual Life Insurance is shopping its Russell Investments unit, home to $247 billion in assets under management.
Russell, which previously tried its hand at issuing its own ETFs, is the index provider for major ETFs including the iShares Russell 2000 ETF (NYSEArca: IWM) and the iShares Russell 2000 Growth ETF (NYSEArca: IWO).
Nasdaq now has over $1 trillion in assets tracking its various indices, Reuters reported. One of the largest ETFs benchmarked to a Nasdaq Index is the PowerShares QQQ (NasdaqGS: QQQ), also known as the “Nasdaq 100 tracking ETF.”