Markit, a London-headquartered provider of financial data, analytics and indices, has announced the launch of Markit ETP Analytics, an independent analytics service for the global exchange-traded products (ETP) market.

Lauren Estabrook, director of ETP Services at Markit.

The service is built on the foundation of Markit’s encyclopaedia and composition data, which spans over 5,100 unique ETPs.

It provides full transparency into the global ETP landscape through a comprehensive set of analytics that covers over 1,300 calculations to address performance, liquidity, risk and benchmark tracking metrics.

Lauren Estabrook, director of ETP Services at Markit, said: “The massive growth in the number and complexity of ETPs, along with increased adoption by the institutional investment community, has created the need for a comprehensive and independent dataset that allows traders and investors to measure ETP performance, risk and liquidity objectively. Markit ETP Analytics will enable investors to compare ETPs, research the ETP market and make informed decisions in a standardised way”.

Key analytics include:

Performance – critical historical regression analysis such as market price returns and NAV total returns (with and without dividend reinvestment and management fees).

Correlation – key statistics on the ETPs’ ability to track the stated benchmark for each return type and to understand the risk associated with the product.

Investment flow – valuable statistics on AUM growth, shares outstanding changes and inflows/outflows.

Trading and liquidity trends – bid/ask spreads, volumes and turnover.

Holdings – statistical breakdown of holding concentrations across sectors, regions and asset classes.

Risk – data points essential for analysing risk metrics, such as beta, alpha, R-squared and standard deviation.

The service will come up against similar services offered by the likes of S&P Capital IQ, IndexUniverse, XTF, and Morningstar.