London Stock Exchange Group (LSEG) has announced the acquisition of XTF, a US-based provider of analytics and ratings which focuses on the exchange-traded fund industry. The integration of XTF’s assets into LSEG’s Information Services Division strengthens the firm’s data and analytics business within the fast-growing ETF industry which now surpasses over $3tn in globally managed assets.

Mark Makepeace, CEO of FTSE Group.

XTF contains a comprehensive database of information related to ETFs listed in the US, Canada and Japan. This data, which can be accessed through their website, data links and white label solutions, includes fund objectives, holdings, underlying index data, portfolio exposure and peer group analysis. The firm also supplies data covering over 6,000 indices across asset class, sector and industry in over 30 countries. Current clients include leading broker dealers, investment advisory firms, trade execution platforms, hedge funds, ETF sponsors, portfolio managers, RIAs, retail investors, and financial websites.

LSEG previously bought Russell Investments, an index compiler and asset manager, for $2.7bn in June 2014. The acquisition prompted the combination with LSEG’s FTSE International business to create FTSE Russell, a leading provider of index solutions; and afforded the Group the firepower to seriously compete in the US, the world’s largest single market for ETFs, alongside MSCI and S&P Dow Jones Indices. The acquisition of XTF will further strengthen the firm’s competitive position at a time when the need for tailored index solutions continues to increase in line with the momentum of the ETF industry.

Mark Makepeace, Group Director of Information Services and CEO of FTSE Russell, commented: “The acquisition of XTF adds a further element to LSEG’s leading offering in the ETF space. The rapid rise of the global ETF market is prompting demand from institutional and retail investors and their intermediaries for access to high quality global analytic tools and XTF offers a complementary product suite to sit alongside the Group’s global benchmarks and ETF listing venues.”

Mel Herman, President & CEO at XTF Inc, added: “XTF is delighted to be joining London Stock Exchange Group and its growing Information Services division. Our offering complements the FTSE Russell global benchmarks business, as well as LSEG’s listing venues. We look forward to expanding XTF’s global data offering.”