Demand for new indices covering fixed income and emerging markets is gathering pace, as investors seek more efficient ways of tracking these asset classes. Helen Fowler looks at a new wave of index developments
Indices are at the heart of every ETF. Yet, up until now, debate has centred mostly on how to follow them, rather than on the actual benchmarks themselves. That is changing, amid growing disquiet over how the benchmarks used to peg these products are calculated, especially in fixed income and emerging markets. Both investors and providers are increasingly looking at whether they have chosen the right benchmarks as the starting point for passive investments that must hug an index. In the worlds of fixed income and emerging markets, there is demand for new products that will solve the many...
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