Before launching a new exchange traded fund, an issuer will have to find the right index to implement their investment strategy. Index providers are the backbone of the ETF industry and selecting the right partner will help determine future success.
In the upcoming ETF Boot Camp conference event in New York City slated for September 29-30, asset managers who want to launch a new ETF can hear from index providers and learn the best practices for implementing an index-based ETF strategy.
Ken O’Keeffe, Managing Director for Russell Indexes, Brett Hammond, Managing Director and Head of Index Applied Research for MSCI Inc., David Krein, Managing Director and Head of Research for NASDAQ OMX Global Indexes, and Rahul Sen Sharma, Partner at Indxx LLC, will be sharing stories and experiences they’ve had with bringing a new ETF to market.
Asset managers should not ignore the importance of the index selection process. With about $1.5 trillion in U.S.-listed ETFs benchmarked to passive indices, providers will have make their new ETF offerings distinguishable from the rest. [A Look at How ETF Issuers Select Index Providers]
With index-based ETFs, investors are capable of constructing portfolios with broad and diversified exposures while also tailoring their portfolio with a certain level of risk. Consequently, asset managers, along with index providers, will have to use the right mix of ingredients to craft an index methodology that will help distinguish the final product from among the thousands of indices in the marketplace.