Index funds

Despite growing to about $1.1 trillion in AUM, senior executives made a series of bets to keep pace in a changing industry that have yet to pay off.

Investors may be put off by the costs associated with these funds, which had an average expense ratio of more than triple their peers.

The leaders raked in a combined $949 billion over the past decade.

Cboe’s first new entry will be a suite of four volatility indexes with different tenors based on the iShares 20+ Year Treasury Bond ETF.

Leveraging big data, machine learning and artificial intelligence will extend stock selection beyond its current capabilities, according to Procure Holdings President Bob Tull.

While small deals are likely, CEO James Gorman said he’d be reluctant to take on a large-scale acquisition

The purchase comes as active asset managers feel intensifying pressure to bulk up as they face stiff competition from passive and index-tracking funds.

The demand is there but it isn’t easy to pull off, according to one custodian that’s already done it.

The holdings in these top-performers “are companies that will be replaced, from a performance standpoint, over the next decade,” an expert says.

“Ideally, you would like clients to try not to make really short-term decisions, however this is an unprecedented situation,” an expert says.