About ETF Global Indices
Introduction: ETFG® Series of ETF Indexes
The overarching goal for index construction at ETF Global is to create the most relevant benchmarks for not only current investment activities but for future investment opportunities. Therefore, in response to demand from Pension, Institutional Asset Manager and Pension Consultant clients, ETF Global developed the ETFG Series of ETF Indexes in 2011. This series of indices is directed at those pensions, asset managers and consultants who are active within exchange-traded-products and feel it is more appropriate to be benchmarked to an index of ETPs than a benchmark reflecting the asset classes of the underlying constituents. Today, the ETFG Series of ETF Indexes spans four primary categories: Bellwether Indices, Market Performance Indices, Dynamic Indices and Custom Indices.
ETF Global Bellwether Indices
ETF GLOBAL 500 (Symbol: ETFG500 Index): The ETFG℠ 500 is a market capitalization weighted index comprised of the 500 largest US Listed ETPs, as ranked by market capitalization, excluding all levered and inverse products. The ETFG℠ 500 representing the universe of ETFs crosses assets classes and regions and is rebalanced quarterly and reconstituted annually.
ETF GLOBAL Composite: The ETF Global composite is a market capitalization weighted index that represents the world of ETFs. This rules based index is comprised of the 1000 largest ETFs as ranked by market capitalization up to the largest 1,000. Rebalanced quarterly and reconstituted annually, the composite includes ETFs across all asset classes and geographic regions but excludes leveraged and inverse ETPs.
ETF Global Market Performance Indices: Asset Class, Geographic, Sector
The ETF Global Market Performance Indices are a pioneer in the ETF and index marketplaces. As the ETF market continues to explode, ETF Global has established relevant benchmarks for those asset managers, consultants, pension funds and others who are active within the Exchange-Traded-Product marketplace. In addition to our bellweather indices, we also provide indices constructed by Region, Sector, Asset Class and Size. This expanding series of indices spans the entire universe of ETFs providing the most relevant benchmarks to a wide array of management styles.
ETF Global Dynamic Indices
“The ETFG℠ Golden Dozen” (Symbol: ETFGQE12 Index): The ETFG℠ Golden Dozen is comprised of the top 12 equity ETFs as ranked by the ETFG℠ Quant model prior to trading on the third Friday of each month. The selection pool includes all U.S. listed, equity ETFs, excluding levered and inverse funds as well as those funds with average daily trading value of less than $5M. The portfolio is equally weighted and reconstitutes monthly on the second trading day following selection.
ETFG℠ Quant Equity 10 (Symbol: ETFGQE10 Index): The ETFG℠ Quant Equity 10 is comprised of the top 10 equity ETFs, as ranked by the ETFG℠ Quant model, prior to trading on the third Friday of each month. The selection pool includes all U.S. listed, equity ETFs excluding levered and inverse funds. The portfolio is equally weighted and rebalances monthly on the second trading day following selection.
ETFG Custom Indices
As markets develop, evolve and change at an ever increasing pace, standardized indices do not always meet necessary measurement requirements. In recent years, the burgeoning ETF market has attracted managers employing unique methodologies of allocating capital. that in many instances require custom metrics for measuring performance. For such needs, ETF Global constructs Custom Indices
To construct a custom index, ETF Global begins with understanding the client’s criteria and then applying the same methods that have been used to derive our existing indices. All ETFG custom indices are constructed in conjunction with the client and upon the same reliable methods that we have used across our suite of indices.