New York-based Indxx has launched the Indxx Global Benchmark series, a suite of regular, market-cap-weighted indices covering major equity markets.
Rahul Sen Sharma, Managing Partner at Indxx.
The series currently comprises eight indices providing broad market exposure to global, developed market, developed ex-US, US, Europe, Japan, Asia Pacific, and emerging market equities.
They are the Indxx Global Markets Index, the Indxx Developed Markets Index, the Indxx Developed Markets ex-US Index, the Indxx USA Index, the Indxx Developed Europe Index, the Indxx Japan Index, the Indxx Developed Asia-Pacific Index and the Indxx Emerging Markets Index.
Each index includes large-, mid-, and small-cap firms, covering roughly 99% of the free float-adjusted market capitalization for that region.
Tradability of the underlying constituents is a key feature, ensured by high liquidity and quality standards, thus rendering the indices suitable as underlying references for investment products, such as ETFs.
Rahul Sen Sharma, Managing Partner at Indxx, commented, “We believe that despite the many structural similarities of today’s financial markets, each market is still unique in terms of size, liquidity, depth, and other factors. Our research team has, therefore, created a systematic approach to incorporate these unique aspects effectively into each index. As a result, we believe we’ve been able to devise an index series that’s truly representative of each respective region, country, or sector.”
The launch marks the opening of a new front for Indxx which, until now, has been known for its niche and thematic exposure indices.
While Indxx has carved out a name for itself as a purveyor of specialist indices, it has arguably missed out on the broader traditional passive movement. By launching the Global Benchmark series, the firm has aligned its capabilities to service that movement.
“We’ve increasingly heard the need from our clients and asset managers for a benchmark series that effectively targets a respective market while offering lower usage costs,” noted Sen Sharma. “With our Global Benchmark Series, we are excited to meet this need via indices that can be used as low-cost alternatives for benchmarking purposes as well as a starting universe for index strategies.”
According to Indxx, the initial indices within the Global Benchmark series will be sliced and diced in the coming months to offer clients a much wider range of index exposure options.