Bringing you live news and features since 2006 

EDHEC-Risk Institute extends availability of free index data to smart factor indices


The smart factor indices provided by ERI Scientific Beta, EDHEC-Risk Institute’s smart beta index provider offshoot, will be subject to the same free access as ERI Scientific Beta’s existing smart beta indices.

The 2,916 indices available on the Scientific Beta platform are accessible through free registration, providing access to the detailed methodology enabling the index to be replicated and to the back history of index compositions.
EDHEC-Risk Institute considers that transparency is indispensable in the area of indices, particularly when smart beta is involved, because the promise of outperforming cap-weighted indices is essentially based on simulated track records. It must be possible for these simulated track records to be challenged by the market and to do so there must be full transparency on the methodology and historical compositions.
Following a detailed study on the transparency of indices, EDHEC-Risk Institute says that numerous European UCITS exchange traded funds (ETFs), by tracking indices that are not transparent, are not respecting the European Securities and Markets Authority (ESMA) rules.
Noël Amenc, director of EDHEC-Risk Institute and CEO of ERI Scientific Beta, says, “The robustness of smart beta indices cannot be assessed with one, two, or even five years of live track record, as is the case for some of our indices. Simulated track records over a long period are essential, but it is even more important to be able to trust those track records, which presupposes full transparency enabling all the actors in the market to be able to share information on and criticism of the indices. Investors often choose indices today on the basis of confidential information, which is a bit like investing in publicly-quoted companies that do not publish their accounts.”

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by