GITNUXREPORT 2025

Index Statistics

Global index market is valued at $32 trillion, dominated by passive investing.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Approximately 65% of index funds are invested in developed markets, with the rest spread across emerging markets

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The top 10 index providers hold over 75% of the global market share for benchmark indices

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The average investor holds a diversified portfolio of at least 10 different indices for risk management, according to recent surveys

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The Global Index Market is valued at approximately $32 billion as of 2023

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Over 60% of indexing assets are managed passively

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The total number of publicly traded companies included in major indices like the MSCI World has increased by 20% over the last decade

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The ETF market linked to indices has grown to over $9 trillion in assets under management in 2023

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The average expense ratio for index funds is approximately 0.09%, significantly lower than actively managed funds

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The global equity index industry managed assets worth around $40 trillion as of 2023

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The most popular index among retail investors remains the S&P 500, with over 70% preference

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Index funds have seen a CAGR of 12% from 2018 to 2023 across global markets

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In Asia-Pacific, index fund assets have grown by over 25% annually in the last three years

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The total assets under management of globally tracked fixed income indices reached approximately $15 trillion in 2023

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The FTSE 100 index includes approximately 100 of the largest UK companies by market cap

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Over 50 new indices are launched each year by various providers globally

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The COVID-19 pandemic caused a temporary decline of 34% in global index assets in Q2 2020 but recovery was swift

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The use of quantitative strategies based on indices has increased by 20% in hedge funds from 2020 to 2023

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The total number of ESG indices globally is over 500, representing a significant portion of the index market

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The average market capitalization of companies within the Dow Jones Industrial Average is over $50 billion

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The S&P 1500 Composite Index covers roughly 90% of the total U.S. stock market capitalization

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Index-linked pension funds have increased their holdings by 15% over the last three years, reaching over $3 trillion in assets

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The introduction of sector-based indices like the Technology Select Sector SPDR has led to a 12% increase in sector-specific index assets

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Only about 10% of total index assets are actively managed strategies, with the majority being passive

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The global market for social index products has grown by 18% annually since 2019, signaling rising demand for socially responsible investing

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Index derivatives trading volume has increased by 25% year over year since 2020, reflecting increased use of index-based hedging tools

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The global smart beta index assets rose to over $800 billion in 2023, with a CAGR of 12% since 2018, indicating rapid growth

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The top five index providers account for approximately 80% of new indices launched annually, demonstrating industry consolidation

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The majority of ETFs tracking indices are passively managed with less than 0.1% expense ratios, contributing to lower costs for investors

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Gold-based indices have increased in popularity as a hedge during inflationary periods, with 5% growth over the last two years

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The global fixed income index market has seen a compound annual growth rate of 9% over the past five years, reaching over $15 trillion in assets

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Environmental, Social, and Governance (ESG) index assets represented approximately 20% of total index assets in 2023, showing significant integration into mainstream investing

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The S&P 500 index has delivered an average annual return of 10% over the past 50 years

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The use of indexes for benchmarking purposes is adopted by over 80% of institutional investors worldwide

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The median tracking error for passive index funds is under 0.10%, indicating high fund accuracy

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The average bid-ask spread for major indices like the DAX is less than 2 basis points, indicating high liquidity

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The MSCI Emerging Markets Index grew by approximately 10% annually over the last five years

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The average turnover rate for indices like the NASDAQ Composite is around 10% annually, indicating moderate rebalancing activity

Statistic 38

The average annual return of the Russell 2000 index, representing small-cap stocks, has been approximately 8% over the past decade

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The performance of the average custom index has outperformed traditional benchmarks by 2% annually due to tailored weighting strategies

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The average tracking error for ESG indices is slightly higher at around 0.15%, reflecting the complexity of ESG scoring

Statistic 41

Since 2015, index-linked products have delivered an average annual return of 7%, varying by region and asset class

Statistic 42

The introduction of smart beta indices has increased the index universe by 15% over the last five years

Statistic 43

The index industry has created over 1,200 new indices in the last year alone, highlighting innovation

Statistic 44

The North American region accounts for nearly 45% of the global index market share

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In Europe, over 70% of institutional investors use indexing as part of their portfolio strategy

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Nearly 40% of retail investors in the U.S. own at least one index fund, highlighting its popularity among individual investors

Statistic 47

The Asian stock markets collectively have over 200 indices tracked by major index providers, showcasing regional diversity

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Key Highlights

The Global Index Market is valued at approximately $32 billion as of 2023
The North American region accounts for nearly 45% of the global index market share
Over 60% of indexing assets are managed passively
The S&P 500 index has delivered an average annual return of 10% over the past 50 years
The total number of publicly traded companies included in major indices like the MSCI World has increased by 20% over the last decade
The ETF market linked to indices has grown to over $9 trillion in assets under management in 2023
The average expense ratio for index funds is approximately 0.09%, significantly lower than actively managed funds
The global equity index industry managed assets worth around $40 trillion as of 2023
The use of indexes for benchmarking purposes is adopted by over 80% of institutional investors worldwide
The most popular index among retail investors remains the S&P 500, with over 70% preference
The introduction of smart beta indices has increased the index universe by 15% over the last five years
Index funds have seen a CAGR of 12% from 2018 to 2023 across global markets
In Asia-Pacific, index fund assets have grown by over 25% annually in the last three years

From a $32 billion industry harnessing over $40 trillion in assets to the rise of smart beta and ESG indices, the global index market is a dynamic powerhouse shaping investment strategies worldwide in 2023.

Market Infrastructure and Participants

Approximately 65% of index funds are invested in developed markets, with the rest spread across emerging markets
The top 10 index providers hold over 75% of the global market share for benchmark indices
The average investor holds a diversified portfolio of at least 10 different indices for risk management, according to recent surveys

Market Infrastructure and Participants Interpretation

While the majority of index funds gravitate toward developed markets and behemoth providers dominate the scene, the prudent investor’s strategy of diversifying across at least ten indices underscores the timeless truth: in the complex world of finance, spreading risk remains the best hedge against uncertainty.

Market Size and Growth Trends

The Global Index Market is valued at approximately $32 billion as of 2023
Over 60% of indexing assets are managed passively
The total number of publicly traded companies included in major indices like the MSCI World has increased by 20% over the last decade
The ETF market linked to indices has grown to over $9 trillion in assets under management in 2023
The average expense ratio for index funds is approximately 0.09%, significantly lower than actively managed funds
The global equity index industry managed assets worth around $40 trillion as of 2023
The most popular index among retail investors remains the S&P 500, with over 70% preference
Index funds have seen a CAGR of 12% from 2018 to 2023 across global markets
In Asia-Pacific, index fund assets have grown by over 25% annually in the last three years
The total assets under management of globally tracked fixed income indices reached approximately $15 trillion in 2023
The FTSE 100 index includes approximately 100 of the largest UK companies by market cap
Over 50 new indices are launched each year by various providers globally
The COVID-19 pandemic caused a temporary decline of 34% in global index assets in Q2 2020 but recovery was swift
The use of quantitative strategies based on indices has increased by 20% in hedge funds from 2020 to 2023
The total number of ESG indices globally is over 500, representing a significant portion of the index market
The average market capitalization of companies within the Dow Jones Industrial Average is over $50 billion
The S&P 1500 Composite Index covers roughly 90% of the total U.S. stock market capitalization
Index-linked pension funds have increased their holdings by 15% over the last three years, reaching over $3 trillion in assets
The introduction of sector-based indices like the Technology Select Sector SPDR has led to a 12% increase in sector-specific index assets
Only about 10% of total index assets are actively managed strategies, with the majority being passive
The global market for social index products has grown by 18% annually since 2019, signaling rising demand for socially responsible investing
Index derivatives trading volume has increased by 25% year over year since 2020, reflecting increased use of index-based hedging tools
The global smart beta index assets rose to over $800 billion in 2023, with a CAGR of 12% since 2018, indicating rapid growth
The top five index providers account for approximately 80% of new indices launched annually, demonstrating industry consolidation
The majority of ETFs tracking indices are passively managed with less than 0.1% expense ratios, contributing to lower costs for investors
Gold-based indices have increased in popularity as a hedge during inflationary periods, with 5% growth over the last two years
The global fixed income index market has seen a compound annual growth rate of 9% over the past five years, reaching over $15 trillion in assets
Environmental, Social, and Governance (ESG) index assets represented approximately 20% of total index assets in 2023, showing significant integration into mainstream investing

Market Size and Growth Trends Interpretation

As the index universe swells to over $40 trillion in assets—bolstered by a US-led passive majority and rapid growth in ESG and smart beta strategies—investors are clearly charting a course toward cheaper, more diversified, and increasingly responsible indexing, even as the industry consolidates into a select few providers and navigates the occasional pandemic-induced turbulence.

Performance Metrics and Investment Outcomes

The S&P 500 index has delivered an average annual return of 10% over the past 50 years
The use of indexes for benchmarking purposes is adopted by over 80% of institutional investors worldwide
The median tracking error for passive index funds is under 0.10%, indicating high fund accuracy
The average bid-ask spread for major indices like the DAX is less than 2 basis points, indicating high liquidity
The MSCI Emerging Markets Index grew by approximately 10% annually over the last five years
The average turnover rate for indices like the NASDAQ Composite is around 10% annually, indicating moderate rebalancing activity
The average annual return of the Russell 2000 index, representing small-cap stocks, has been approximately 8% over the past decade
The performance of the average custom index has outperformed traditional benchmarks by 2% annually due to tailored weighting strategies
The average tracking error for ESG indices is slightly higher at around 0.15%, reflecting the complexity of ESG scoring
Since 2015, index-linked products have delivered an average annual return of 7%, varying by region and asset class

Performance Metrics and Investment Outcomes Interpretation

Over the past half-century, the S&P 500's steady 10% annual climb, coupled with the near-perfect tracking accuracy and widespread adoption of indices as benchmarks by institutional investors—despite slight complexities in ESG measurements—underscores that while markets fluctuate and strategies evolve, passive index investing remains the resilient heartbeat of the global financial landscape.

Product Development and Innovation

The introduction of smart beta indices has increased the index universe by 15% over the last five years
The index industry has created over 1,200 new indices in the last year alone, highlighting innovation

Product Development and Innovation Interpretation

The explosive 15% growth in the index universe, fueled by over 1,200 innovative new indices in just a year, underscores a rapid evolution that transforms the traditional market compass into a veritable smorgasbord of choices—though investors must navigate carefully through this expanding maze.

Regional and Demographic Insights

The North American region accounts for nearly 45% of the global index market share
In Europe, over 70% of institutional investors use indexing as part of their portfolio strategy
Nearly 40% of retail investors in the U.S. own at least one index fund, highlighting its popularity among individual investors
The Asian stock markets collectively have over 200 indices tracked by major index providers, showcasing regional diversity

Regional and Demographic Insights Interpretation

With nearly half of the global index market share and widespread adoption across individual and institutional investors worldwide, indexing has cemented itself as the universal language of modern investing, transcending borders and investor types alike.