Members of the IIA primarily provide indices that are easily distinguishable from other products.
They tend to generate indices on the basis of transparent, open, and verifiable data, most often on the basis of information publicly reported to the market. For certain asset classes where underlying or observable market data is not available, members calculate indices on the basis of rules-based models. Because of the competitive index provider market and the substitutability of indices, IIA members are necessarily dedicated to providing users with indices that are transparent, reliable, and easily understood.
With regard to the size of the index industry, IIA members currently calculate over one million indices, with the oldest dating back to 1894. IIA member indices provide users with a method of measuring changes in a portfolio of securities, commodities, or other financial instruments. In many cases, indices are generated by retrieving inputs publicized by a regulated exchange, such as actual traded prices, or other observable market activities.
IIA members invest heavily in continuous index research and innovation to provide the best products possible to our clients. And, in many cases, HA members consult with the broader investment community to discuss and improve upon the methodologies used to generate an index. In our experience, we have found that generating accurate and timely indices is of paramount importance to index users.