The first thing you see at etfg.com is our family of indices led by the benchmark ETFG Global 500 Index covering all asset classes and regions. Increasing numbers of asset managers are taking advantage of that unique attribute of ETFs enabling them to give their clients exposure to any asset classes, anywhere, with the liquidity of equities. Until recently, those managers had no choice but to benchmark against indices not relevant to their portfolios or construct composite indices that simply mirrored them. The ETFG 500 provides the solution reflecting the capitalization weighted performance of the 500 largest ETFs excluding leveraged and inverse products, reconstituted annually and rebalanced quarterly. As of last night’s close it is up 8.57% year to date. Below it on the home page you will see the global ETF market sliced into the various ETFGsm asset class indices.
Leading that group this year is the Real Estate Index followed by Equities with the Commodities and Multi Asset Indices lagging the rest. Clicking the Geographic tab reveals 7 indices slicing the globe in the way our institutional clients asked for when we devised them in 2011 and the Sector tab reveals the global equity ETF market sliced into the ten common industry sectors.
ETF Globalsm is the only provider of benchmarks as broad and relevant to the world of ETFs but our clients asked for more and we love it when they do. The Dynamic tab displays our two smart beta indices driven by our Quant model. The daily selections of the model are too much for most managers so we reconstruct the constituents monthly on a rules based basis. The ETFG Quant Equity 10 Index equal weights the 10 highest ranked funds on selection day and the Golden Dozen takes the top 12 that meet minimum liquidity requirements common to many institutional managers. Their year to date performance may not look too special as central banks around the world have inflated the S&P 500 in 2013 but since inception last July both Dynamic indices are ahead of the S&P and the MSCI All Country World Index.
We also devise custom indices for clients and have others in development. If you want to benchmark against any of them please let us know at firstname.lastname@example.org or call our office at 212-223-ETFG (3834). We offer data on the ETFG Global 500 for free and the two Dynamic indices are priced based on AUM. Those three are published out of Stuttgart and available widely so if your quote provider doesn’t display them please ask them to. And please ask us any questions at that email above.