Self-indexing in the ETF industry is hardly a new phenomenon. In fact, many ETF providers such as Wisdom Tree and Index IQ have successfully built entire business models that rely solely on in-house index creation.
But up until recently self-indexing had been pretty much confined to niche strategies, and that’s a state of affairs that will no longer prevail if iShares, the world’s biggest ETF company, jumps into the self-indexing game.
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