US investors have a long history of using US equity indices as a vehicle to access equity exposure. The US structured product industry has also used this approach extensively, with US equity indices representing over 80% of all the US structured products market volume sold in 2019.
For the past five years, the market share of US indices has increased by 13%, with strategy and factor indices doubling their size to two percent over the four years ending 2019. For their part, market cap indices have grown 13%. However, while proprietary indices increased their market share until 2018, they have declined since then due to underperformance over the last 18 months. Proprietary indices now account for five percent of all products sold in 2019, a similar level than in 2015.
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