As in recent days, passive investments are gaining exposure and people are pouring the explosive amount of money in it. So, Nasdaq finally has outed its product to clarify the ups and downs in the investment patterns which will help companies make sense of the market.
Exchange-traded funds, with the use of this revolutionary tool, saw combined US assets hit $3.3 trillion in November, a roughly $900 billion single-year increase, according to Investment Company Institute data.
After the market showed an unbelievable growth, it was important for someone to make general people understand ETFs perks, hence Nasdaq will show analytics about what's going on with their stock price.
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Stacie Swanstrom, executive vice president and head of Nasdaq Corporate Solutions, said:
"With one-third of all mutual fund and ETF assets under management now in passive index funds, the need for an analytics-based solution with actionable insights on passive index trends has never been greater,"
The software called PassiveIQ recently launched a one-stop platform which collects data from passive markets and further interprets it. So by using PassiveIQ, companies now can use those statistics to get into a certain index or ETF and help the user make a potential investment. As recently, more money flowing into ETFs, it surely will help companies make more capital.
PassiveIQ is like a search engine for exchange-traded products and indexes, which allows people to see, evaluate, and choose from the available option. Further, in near future, it will also provide users with insights into why a company may or may not be included in an index. Hence, people need to realize what the index is and how is it going to help them make a smart investment. Formore Tech related story keep up with Hitberry.