ETFs and Financial Indices are continuing to grow within financial services and we're seeing an increasing number of candidates looking to progress their careers within the indexing world. When you hear someone ask:"how's the market or economy performing?", a great measure, which anyone can use to understand, is through indices.
Within financial services, an index is a measurement of the stock market. Different indices can represent a specific sector or market. For example, the iconic S&P 500 represents the performance of the 500 largest US companies. The FTSE 500 is that but the UK market. NASDAQ typically has more of a tech-specific industry focus. The Nikkei 225 regards the Japanese market. The list goes on!
Interested in getting involved?
Here are our top tips to start or progress your career within the indexing / ETF world:
- Pursue a CFA qualification: We’ve heard from several recruiters and hiring managers that CFA qualifications, while not essential, are highly advantageous in this sector. It shows not only a further level of curiosity to learn and educate in financial concepts, but also addresses key concepts you would be analysing in an index / ETF role. Even passing Level I (of III) demonstrates a dedication to more in-depth learning in this area.
- Network: There are a growing number of conferences that focus on indices and ETFs. ETP Forum has been running for the past 10 years in New York and InsideETFs is the #1 conference in this space. For those based in London, there’s ETF Ecosystem and for those in wider Europe, hanetf runs the largest conference. It's also important to stay connected and network with individuals from the industry. Women in ETFs have local and global events for anyone wanting to get involved, connect, and support in breaking into this sector.
- Show a passion: While an educational background and expertise is important, hiring managers will really want to assess a candidates excitement for the area. They will want to know how an individual can add value and insight within a team, so being able to drop wider knowledge or debate points from articles and podcasts will show a genuine interest in the sector.
- It’s not always about the biggest players: When people think about index providers or ETFs, you might initially think about applying to large and well-known companies, like S&P DJI, Nasdaq, MSCI, or FTSE Russell. However, whilst they are incredibly established and impressive, there are hundreds of smaller companies that are often overlooked. Working for providers such as Global ETFs, Stoxx, Qontigo and Indxx can provide you with in-depth knowledge and experience of index and ETFs. Any role, from business development to an analyst position, will give you crucial experience to allow your career to grow in this exciting sector.