Standard & Poor’s exchange traded funds licensing business experienced exceptional growth in 2010, with the launch of 95 ETFs based upon its family of stock market indices. The total number of ETFs linked to S&P Indices is now 301.
2010 was characterised by unprecedented growth in S&P Indices’ international licensing business, with ETF launches outside of the United States outpacing those from within. Of the 95 new ETFs tracking Standard & Poor’s family of indices, 57 were listed outside of the US. The greatest growth was in Europe, where 29 new ETFs were launched by product providers in 2010 – more than doubling the total for the region.
In Europe, S&P Indices licensed eight product providers (Amundi, BNP Paribas, Commerzbank, Credit Suisse, Deutsche Bank, HSBC, Lyxor, and Source) to launch ETFs based on the S&P 500 providing greater access to the US equity market.
In the US, S&P Indices and Vanguard finalised an agreement that has so far resulted in 10 new ETFs for US domestic investors. Additionally, S&P Indices entered into an agreement with SSgA that transitioned seven of their existing ETFs, including their style series, to S&P benchmarks.
S&P Indices also expanded its footprint in Asia Pacific, highlighted by a landmark licensing agreement with Bosera Asset Management for an S&P 500 ETF in China. In addition, S&P Indices relocated its head of ETF licensing to Asia in an effort to catalyze additional growth in the region.
“Our ETF licensing business is well positioned to contribute to S&P Indices’ growth in 2011 as our reach becomes increasingly global and investors allocate more of their assets to ETFs,” says Alexander Matturri, Executive Managing Director at S&P Indices. “We believe 2011 will bring further growth in ETF development throughout the world and across a variety of asset classes including equity, fixed income and commodities where we are already well positioned with leading index products and services.”