MSCI reports strong demand for factor-based indexes

MSCI has reported strong net inflows to exchange-traded funds linked to factor indices. As of 30 September 2016, global factor ETFs attracted nearly $51bn in net cash flows, with $17.5bn of those fund flows going to ETFs linked to MSCI’s factor indexes, approximately one third of that share.

Overall, MSCI factor indexes have grown to attract more than $170bn in benchmarked assets globally.

MSCI also reported significant growth in assets specifically linked to its minimum volatility indexes, which grew by 122% to $35.4bn year-over-year. Overall, 68% of the total equity ETF assets among low volatility ETFs globally are linked to MSCI indexes, making MSCI the leader in this index category.

With more than 850 equity ETFs tracking MSCI indexes globally, and over 175 equity ETFs tracking MSCI’s factor indexes, more equity ETFs track MSCI’s indexes than those of any other index provider.

“This has been a monumental year for MSCI based on the record number of ETFs that track our indexes,” said Diana Tidd, MSCI’s head of Index Products. “Our innovative factor index offering, combined with the strength of our top quality brand, continue to make MSCI indexes the first choice of ETF providers around the world.”

Alicia Villegas
Alicia Villegas speaks Spanish and Italian and is Iberia Correspondent for InvestmentEurope. She was shortlisted for the Rising Star Award at the British Media Awards 2017 and Writer of the Year at the PPA Independent Publisher Awards 2016. Previously, she worked for almost three years at the seafood business website Undercurrent News as a market reporter. In Spain, she also worked for more than five years for several media outlets.

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