Indexes’ Five Truths
IIA’s members, all independent index providers, posit the following values:
- That indexes measure market activities, not create or distort them
- Indexes lower investment costs but are not investable products
- Index providers operate according to industry-standard methodology and best practices
- And index providers support product and technological innovation.
Our Place in the Ecosystem
Independent index providers serve a central and pivotal role in facilitating market access and investment democratization; yet the role of indexes in financial markets is frequently misunderstood. Indexes plug into, but are distinct from, well-defined flows of information and productization across a wide range of market participants and trading activities. See the chart below for their roles and these relationships’ structure.