Dow Jones Indices: 58–59
Growth Drivers

Considerable Runway in the Active to Passive Switch

Index Funds Have Grown as a Share of the Fund Market

(dollars in trillions; percentage of total net assets, year end)

0.00 0.25 0.50 0.75 1.00 2022 2012 Index mutual funds Index ETFs Actively managed mutual funds and ETFs $23.7T 46% $11.6T 78% 10% 11% 54% 25% 20% ’12 ’22 22%

Source:  Investment Company Institute 

Note:  Totals may not sum to 100% due to rounding

Index Fund Share of U.S. Stock Market Is Small

(percentage of U.S. stock market capitalization year-end)

8 % 1 8 % 7 3 % 6 9 % 1 4 % 1 8 % ’12 ’22 Ind e x F und Sha r e o f U .S . S t o c k Mar k e t Is Small (pe r centa g e o f U . S . s t o c k mar k e t capitaliz a tion , y ea r -end)

The Active-Passive Shift Continues in Equities, with Passive Fixed Income Products Gaining Flows (vs Active) in Recent Years

Cumulative flows to U.S. equity funds

(dollars in billions) (January 2013–December 2022)

’15 88 $120 815 (42) ’14 $25 832 1,250 625 0 1,875 (1,250) (625) $2,500 (1,875) (2,500) ’13 ’14 ’15 ’16 ’17 ’18 ’20 ’21 ’22 ’19 -2500 -1875 -1250 -625 0 0 625 1250 1875 2500 Index domestic equity mutual funds Index domestic equity ETFs Index U.S. equity mutual funds Index U.S. equity ETFs Actively managed U.S. equity mutual funds Index-oriented products received nearly $1.9 trillion in new net cash and reinvested dividends PASSIVE ACTIVE Actively managed domestic equity mutual funds experienced a net outflow of $1.9 trillion

Source:  Investment Company Institute. 2023 Investment Company Fact Book: A Review of Trends and Activities in the Investment Company Industry 

Note:  Mutual fund data include net new cash flow and reinvested dividends; ETF data for net share issuance include reinvested dividends

Rapid Global ETF AUM Growth Expected to Continue

(dollars in trillions)

$ 1 5 T $ 9 T ’22 ’27 Rapid G l obal ET F A UM G r o wth Expe c t ed t o Continue (dolla r s in trillions)

Source:  PwC 2022 Global ETF Survey, “ETFs 2027:  A World of New Possibilities”

Exchange-Traded Derivatives / Usage-based

From product creation to risk transference and liquidity, S&P Dow Jones Indices contributes to more liquid, efficient, and transparent markets.

S&P Dow Jones Indices’ Key Exchange Partnerships

  • GCME Group
  • Partner since 1982
  • CME Group, part owner of S&P Dow Jones Indices through a joint venture with S&P Global, offers futures and options on futures on a range of S&P Dow Jones Indices
  • Cboe
  • Partner since 1983
  • Cboe lists options on S&P Dow Jones Indices, including options on the S&P 500, which it uses to create VIX®
  • MXTMX Group
  • Partner since 1998
  • S&P Dow Jones Indices and TMX Group together offer Canada’s premier market benchmarks
  • S&P/TSX 60
  • Equity and strategy indices
  • ASX
  • Partner since 1999
  • S&P Dow Jones Indices and ASX offer leading measures of the Australian markets, including equity indices and fixed interest indices
  • S&P/ASX 200
  • Equity, fixed income, and strategy indices

Note: Illustrative Example

S&P Dow Jones Indices offers independent, rules-based, transparent, and trusted market benchmarks that power an expanding, diverse, and liquid ecosystem of global financial products