ETF Express: Bloomberg Wins ETF Data Vendor of the Year

This article was originally published by ETF Express.

Interview with Leila Sadiq, Bloomberg’s Global Head of Enterprise Data Content and Arpita Nigam, Bloomberg’s Head of Enterprise Data Equities, Funds & Entities about Bloomberg’s recent win for Best ETF Data Vendor of the Year in the  2024 ETF Express US ETF Awards. In this year’s awards, Bloomberg also won Best Index Provider – Fixed Income ETFs and Best Index Provider – Commodity ETFs.

Tell me about your business and how you are uniquely positioned to support the ETF and funds industry?

Leila Sadiq: Data that operates in isolation is like trying to make a firm-wide decision based on information from one department. By providing interconnected data that supports the full investment lifecycle at scale across an enterprise through Data License, Bloomberg gives clients powerful insights to holistically inform their trading and operations.

Bloomberg applied this interconnected data expertise to our Funds Data Solution, which we launched last year. This solution gives customers access to their fixed income, equities, derivatives, and funds reference, pricing, corporate actions, risk, regulatory and ESG data all in one place. This makes it easier for clients to devise investment strategies, evaluate performance, support compliance workflows and more.

What plans do you have for growing your business over the next year?

Leila Sadiq: We are expanding our historical fund holdings data to provide greater insight into macro signals and security ownership analysis to support clients’ portfolio construction, benchmarking, rebalancing, tracking risk and positions, trading and order workflow processes.

To enhance fund analysis and research workflows, we are expanding our fund flows data across fund types as well as continuing to build out our fund analytics. Bloomberg combines its holdings data with its premium security-level data to deliver fund-level ESG Scores & Analytics so customers can drill down to determine if a fund truly meets sustainability criteria. Clients can also gain visibility into the liquidity, credit and interest rate risk exposure of a given fund with fund-level risk metrics based on Bloomberg’s award-winning risk data solutions.

What trends have you seen over the past year that have had the biggest impact on the funds and ETF industry?

Arpita Nigam: Two significant changes we have seen are firstly, ETFs have historically been passive. However, this is shifting and we see more and more active semi-transparent and active ETFs coming to market. Given their ability to charge higher fees versus passive ETFs, we expect this segment of the market to expand.

Secondly, nearly 50 per cent of ETF launches in the first half of 2024 contained derivative holdings. These included derivatives being used for hedging, leverage and income generation. Bloomberg not only has a strong funds data offering but also provides robust data on derivatives, which enables us to map fund holdings to derivative positions and provide both transparency and analytics on these holdings.

What do you think are Bloomberg’s biggest differentiators when it comes to your ETF data?

Arpita Nigam: I would say it comes down to three attributes: coverage, analytics, and access.

Bloomberg delivers data on 12,000+ exchange traded products (ETPs) spanning ETFs, ETCs and ETNs, and covers 98 per cent of European domiciled ETFs with visibility to underlying portfolio constituents.

With Bloomberg’s ETF data, customers can access pricing, reference data, fund flows, Bloomberg’s proprietary dividend forecast, fund holdings as well as advanced look-through analytics. These analytics are based on robust underlying equities, fixed income and derivative holdings data which enables us to deliver critical insights and risk profiles for funds, such as holdings-weighted probability of default as well as OAS effective duration.

Finally, Bloomberg’s ETF data is available where clients need it, whether that’s on the Bloomberg Terminal for traders, via Data License for scalable enterprise-wide use, or via B-PIPE for real-time access and pricing.

To learn more about Bloomberg’s Funds Data, click here.

About Bloomberg

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