ATLANTA & NEW YORK–This was pushed by continued progress in belongings underneath administration (AUM) in ETFs utilizing ICE mounted revenue, thematic and ESG-focused indices, together with an growing variety of established mounted revenue and fairness ETFs – equal to over $60 billion in AUM – switching their underlying benchmarks to ICE indices.
In 2020, belongings underneath administration in U.S. mounted revenue ETFs jumped by $186 billion to $969 billion in AUM, outpacing U.S. fairness ETF progress of $165.4 billion, in line with ETF.com. It was additionally the second consecutive 12 months that mounted revenue inflows exceeded fairness ETF inflows. Moreover, thematic ETF investing, which connects disruptive macro-level tendencies with underlying investments akin to sustainable vitality or the electrical automobile (EV) business, has surged not too long ago. On the finish of the primary quarter 2021, AUM for U.S. thematic ETFs totaled $133 billion, in comparison with $104 billion on the finish of the fourth quarter of 2020, in line with World X analysis.
“The accelerating adoption and progress of passive investing has been an essential driver of natural progress for our index enterprise,” mentioned Lynn Martin, President of Fastened Revenue and Knowledge Providers at ICE. “However much more crucial has been the efforts we’ve made to dramatically enhance the breadth of our providing and the flexibleness we’ve launched into our method to index building and threat administration. This has resulted within the launch of a number of new ETFs benchmarked to our indices, in addition to transitions of many present ETFs to ICE indices, and demonstrates the end-to-end worth proposition we offer to our clients.”
ICE Knowledge Indices, LLC has seen double-digit annual income progress because the acquisition of the ICE BofA suite of indices in 2017. A key driver of that progress has come from ETF licenses as AUM benchmarked to ICE’s indices has grown to over $300 billion from lower than $100 billion on the finish of 2017. Notably, the primary half of 2021 noticed AUM in ETFs benchmarked to ICE indices enhance by $35 billion, together with $24 billion in belongings at established ETFs that transitioned their underlying benchmark to ICE. An extra $36 billion in introduced transitions are deliberate to happen within the second half of the 12 months. Moreover, during the last 12 months ICE has launched over 250 new indices throughout its mounted revenue, fairness and commodity index households, lots of which have been chosen as benchmarks for ETFs within the U.S. and in markets all over the world. The brand new indices embody a rising providing of ESG and thematic indices.
“ESG and thematic investing is an thrilling space of the index business that permits traders to concentrate on among the hottest tendencies and most revolutionary sectors,” added Phil Galdi, Vice President of Company Improvement at ICE Knowledge Providers, “Like core mounted revenue and fairness ETFs, ESG and thematic funds current attention-grabbing funding alternatives, and are an space the place we’ve been capable of apply our index building methodologies with the best outcome.”
ICE affords a collection of over 5,000 world fairness, mounted revenue, commodity and international alternate indices, and helps all elements of the benchmarking and efficiency measurement course of. Devoted to innovation and adaptability, ICE affords a variety of benchmarks and customised options to deal with the altering wants of index stakeholders globally.
For extra data on ICE Knowledge Indices, LLC please go to www.theice.com/market-data/indices.
About Intercontinental Trade
Intercontinental Trade, Inc. (NYSE: ICE) is a Fortune 500 firm that designs, builds and operates digital networks to attach individuals to alternative. We offer monetary expertise and knowledge companies throughout main asset lessons that provide our clients entry to mission-critical workflow instruments that enhance transparency and operational efficiencies. We function exchanges, together with the New York Inventory Trade, and clearing homes that assist individuals make investments, elevate capital and handle threat throughout a number of asset lessons. Our complete mounted revenue knowledge companies and execution capabilities present data, analytics and platforms that assist our clients capitalize on alternatives and function extra effectively. At ICE Mortgage Expertise, we’re reworking and digitizing the U.S. residential mortgage course of, from shopper engagement by way of mortgage registration. Collectively, we rework, streamline and automate industries to attach our clients to alternative.
Logos of ICE and/or its associates embody Intercontinental Trade, ICE, ICE block design, NYSE and New York Inventory Trade. Info relating to extra emblems and mental property rights of Intercontinental Trade, Inc. and/or its associates is situated right here. Key Info Paperwork for sure merchandise coated by the EU Packaged Retail and Insurance coverage-based Funding Merchandise Regulation may be accessed on the related alternate web site underneath the heading “Key Info Paperwork (KIDS).”
Secure Harbor Assertion underneath the Personal Securities Litigation Reform Act of 1995 — Statements on this press launch relating to ICE’s enterprise that aren’t historic details are “forward-looking statements” that contain dangers and uncertainties. For a dialogue of extra dangers and uncertainties, which might trigger precise outcomes to vary from these contained within the forward-looking statements, see ICE’s Securities and Trade Fee (SEC) filings, together with, however not restricted to, the danger elements in ICE’s Annual Report on Type 10-Okay for the 12 months ended December 31, 2020, as filed with the SEC on February 4, 2021.