The purpose of this research is to provide readers with a comprehensive understanding of index investing, including exchange traded funds (ETFs), index mutual funds, direct indexing (retail separately managed accounts), & indexed separate accounts. Index investing is growing rapidly, driven by many factors. BlackRock, The Vanguard Group, & State Street Global Advisors dominate the retail portion of the market, while Northern Trust, Parametric Portfolio Associates, JP Morgan Chase & Company, and The Bank of New York Mellon are large players in the institutional portion of the market. This research summarizes the highlights of Tiburon's underlying research on exchange traded funds (ETFs), index mutual funds, direct indexing (retail separately managed accounts), & indexed separate accounts. This research fits within Tiburon's specialized topics series, which includes a wide variety of trending topics.
This research starts with a context setting chapter, and then addresses the key historical phases of index investing, including:
- Indexed Separate Accounts Emergence Phase
- Index Mutual Funds Emergence Phase
- Exchange Traded Funds (ETFs) Emergence Phase
- Exchange Traded Funds (ETFs) Dominance Phase
- Direct Indexing Emergence Phase
This research defines the core product markets in index investing, including:
- Exchange Traded Funds (ETFs)
- Index Mutual Funds
- Direct Indexing (Retail Separately Managed Accounts),
- Indexed Separate Accounts
And this research makes several future predictions for index investing, including:
- Substantial Growth in Index Investing
- Index Investing Net Flows to Continue to be Dominated by Exchange Traded Funds (ETFs) with Rapid Rise of Direct Indexing
- Substantial Growth in Factor Investing & Smart Beta Products
- Substantial Global & International (Non-United States) Index Investing Markets
- Moderate Growth in Index Investing Firms Venture Capital Investments
- Few Index Investing Firms Mergers & Acquisitions
- Few Index Investing Firms Initial Public Offerings (IPOs)
