Assets in equity ETFs linked to MSCI Indexes surge past $1 trillion
December 01 2020 - 9:59AM
Business Wire
- Growth driven by investor demand
for transparency into global equity markets
- MSCI believes continued demand for
ESG, climate, factor, thematic and fixed income investment tools
will drive further innovation and growth
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision
support tools and services for the global investment community,
announced today that the assets in equity exchange-traded funds
(ETFs) linked to its indexes crossed the $1 trillion mark on
November 16, 2020.
Asset growth in equity ETFs linked to MSCI’s indexes has been
fuelled by strong investor demand for transparent and liquid
products to access global equity markets. More recent growth has
been driven by the rising focus on environmental, social and
governance (ESG) and climate considerations and the interest in
factor index-linked strategies. Today there are over 1,500 equity
and fixed income ESG and climate indexes that utilize MSCI ESG
Research ratings and data and the demand for standard and custom
solutions in this area is growing.
As indexed investing continues to rise, MSCI believes ESG,
climate, factors, thematic and fixed income investment will mark
the next stage of growth for ETF-linked exposures. There are over
$71 billion in ESG and climate equity ETF assets linked to MSCI
indexes, with seven of the ten largest equity ESG ETFs in the U.S.
all benchmarked to MSCI indexes.1
Henry Fernandez, MSCI’s Chairman and CEO, said: “The
investment industry continues a tremendous transformation towards
new opportunities including new geographies, new asset classes, new
styles and strategies, and more sustainable investing. MSCI is
positioned to be the change agent that helps investors stay at the
forefront of that transformation and on the efficient frontier of
risk and return, as well as the partner of choice for investors
around the world who are seeking exposure to the world’s capital
markets and need to understand the opportunity set.”
Baer Pettit, MSCI’s President and COO, said: “Over the
past 50 years, MSCI has been a leader in providing indexes and
other research-driven, technology-enabled tools and solutions for
global investors, initially with market-cap indexes across
geographies and industries. By focusing on establishing an
innovation mindset, we have empowered our teams to explore
creative, robust and holistic tools and solutions to help our
clients make better informed investment decisions.”
Diana Tidd, MSCI’s Head of Index, added: “This milestone
reflects MSCI’s position as a leading provider of index solutions
to ETF providers globally. We continue to see fast adoption of our
indexes as institutional investors turn to them to help understand
the global investable universe, build sustainable, diversified
portfolios, and identify long-term financial risks and
opportunities.”
About MSCI
MSCI is a leading provider of critical decision support tools
and services for the global investment community. With over 45
years of expertise in research, data and technology, we power
better investment decisions by enabling clients to understand and
analyse key drivers of risk and return and confidently build more
effective portfolios. We create industry-leading research-enhanced
solutions that clients use to gain insight into and improve
transparency across the investment process. To learn more, please
visit www.msci.com.
Notice
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements relate to future events or
performance and involve risks that may cause actual results or
performance differ materially and you should not place undue
reliance on them. Risks that could affect results or performance
are in MSCI’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 filed with the SEC on February 18, 2020. MSCI
does not undertake to update any forward-looking statements.
No information herein constitutes investment advice or should be
relied on as such. MSCI grants no right or license to use the
information contained herein. MSCI MAKES NO EXPRESS OR IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
OTHERWISE WITH RESPECT TO THE INFORMATION HEREIN AND DISCLAIMS ALL
LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW.
1Calculated by MSCI using information from Refinitiv and
Bloomberg.
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