The ETF Market Calls for a Customized Approach to Data Management

The market for Exchange-Traded Funds (ETFs) continues its stratospheric rise. At the end of 2020, assets under management in ETFs reached $7.71 trillion – only a little short of the $7.76 trillion worth of assets in index mutual funds. It is thought that in the intervening months ETFs may have edged ahead of mutual funds, and possibly reached $8.33 trillion at the end of March 2021.

The market will likely continue to see strong growth in the months and years ahead. Indeed, given that ETFs are structured in such a way as to generate lower capital gains tax bills for investors, it’s been speculated that Biden’s proposed tax reforms could accelerate the shift from mutual funds to ETFs.

John Farris, EVP, Strategic Partners and Alliances RIMES, comments: “There are two elements to a successful ETF data management approach. First, firms need to ensure that they have visibility of composition data so they can understand their true risk exposure. Second, they need to find a data service that is customized to their unique needs. For example, does it provide custom views across sponsors, and is it compatible with your data warehouse and other end user systems?

“The ETF Data Management service delivers against both these requirements. And we’re constantly looking at how we can improve the service to deliver against new client requirements – that’s why, for example, we have recently made the service available to clients using Snowflake.

“With the right ETF data, firms will gain insight and agility – two important levers for differentiation and success.”

”The popularity of ETFs to implement investment strategies is well established and one of the most rapidly evolving dynamics across the asset management industry,” said Matt Glickman, VP of Customer Product Strategy, Financial Services at Snowflake. “We’re excited to host RIMES data on Snowflake Data Marketplace, so they can leverage the benefits of Snowflake’s single, integrated platform to support all forms of ETF activity by providing validated daily ETF composition and reference data directly to central client stores or point-to-point applications within their architecture.”

RIMES sources all ETF data directly from the sponsor and has applied their industry leading data quality standards setting the RIMES ETF data apart from every other data provider in the industry. As a Snowflake Data Partner, RIMES now offers its ETF Data Management Solution on Snowflake Data Marketplace, so Snowflake customers can access the full complement of their offering, including holdings and Portfolio Compositions Files (PCFs).

The content provided in these articles is intended solely for general information purposes, and is provided with the understanding that the authors and publishers are not herein engaged in rendering regulatory or other professional advice or services. Consequently, any use of this information should be done only in consultation with qualified legal counsel. The information in these articles was posted with reasonable care and attention. However, it is possible that some information in these articles is incomplete, incorrect, or inapplicable to particular circumstances or conditions. We do not accept liability for direct or indirect losses resulting from using, relying or acting upon information in these articles.

Posts by Topics