Fox Business
Expand
Browse All Video
Watch Live

You're watching...

CME, McGraw Hill Launch S&P Dow Jones Indices

Details

  • Description

    S&P Dow Jones Indices CEO Alex Matturri on how investors can benefit from indices.

  • Duration 4:42
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Because guess what McGraw-Hill and the Chicago Mercantile Exchange have taken those two brands the Dow and the S&P.

Put them together to launch the S&P Dow indices making them -- the world's largest index provider look I'm telling you a lot of you are investing on a daily basis -- ETFs that are based on indices that are run by these companies.

Or simply in index funds that look exactly at that as far as mutual funds are concerned joining us now -- a Fox Business exclusive.

To talk about the investment opportunities is Alex and -- he's the CEO.

Of -- US and and what it means to our viewers what you guys are doing now with the brand new company.

-- was well you know we've been able to bring together two of the iconic brands in the index business.

With over 200 years of experience now measuring markets.

Right now on a combined basis we'll have over six trillion dollars of investor assets that are benchmark -- indices -- over one point five trillion.

That are actually index to these indices.

So from an investor's standpoint will be able to bring them even more services.

That they can use in terms of measuring or investing in the capital markets we up.

And talk about the S&P the Dow the S&P health care index all kinds we can throw some of them up on the screen and rotate through them the ones that people are familiar with but.

-- I was stunned by this -- because it cover the markets for a long time I didn't realize there were 835000.

He's this he's out there.

That are related to what you do some of the more obscure ones.

All you'd be surprised now many of these are different currency versions of them.

You know many people like to invest in in our our base index about wanted to nominated for example in a foreign currency we even have a gold version of the S&P 500.

Possibly many different ways that people can use these indices are often times as a basis for investment products -- just to measure the performance of their portfolios.

S&P financials S&P energies utilities industrials.

Then you get the mutual funds out there who are all dependent on what you do but at at the for -- viewer who's watching right now what's the investment opportunity.

With the new brand out there.

Well -- have more choices available to them and of course we're always innovating and developing new indices.

And you have to remember our business isn't just for US investors but really we've been expanding globally so many of these indices.

Are available to foreign investors some seeking to invest in the US markets and others looking to attract investments in our own home markets.

Listen if you follow the regulations anybody can put together and -- benchmark or some type of index but.

We know that sometimes that's not that reliable recently the scandal with Libor the London Interbank offered rate.

Which is that interest rate of that that measures what banks charge each other that was involving sixteen different banks.

And we know now it was manipulated.

How do you ensure that there isn't any manipulation.

-- and first of all you know -- an independent provider.

While we're not a product provider so we don't actually sell or create -- ETFs or index funds of people use our.

We just provide the benchmarks for them so we have no vested interest.

In in now manipulating the index of course people -- from Maya was our index committee structure.

So that's totally walled off from the rest of our business.

But importantly again it comes down to the conflicts of interest that could exist.

In our case we just don't have any.

41 new ETFs were created in the first quarter of that are.

Basically based on your indices 23 of those in Europe.

So people just take your indexes and mix and match them Doolittle alchemy right and then they can create an ETF.

Well there're there are they're developing products all the time how -- does -- not just an ETFs but could be structured products mutual funds.

Bob many different types of products that use an index as -- -- basis for either tracking it directly or to measure the performance summit.

Why as I said 830000.

Indices that you guys have created or put together -- and operate what what is the strangest one in your opinion Alex.

-- and -- that's a hard one.

But 800000 we have about quite a few out there and as you can imagine they're not all used every day sure -- -- clearly the the highlights are you know -- those indices that we develop either.

-- for exchanges.

-- exchange traded products or off again for our investors -- to use as a benchmark.

Well it's it's fascinating to watch and people can get a sense when they put these indexes together.

As a basket kids who want better cents vs just a single stock in a single a in a single sector thank you so much Alex.

Thank you analyst Alex military -- CEO of S&P.

Dow Jones in --

Load More