STOXX Indexes Announces Partnership With SEI, Andrew Ang

Indexes provider STOXX Ltd. announced a strategic partnership with financial services provider SEI Investments Co. and quant academic Andrew Ang, a pioneer of modern factor investing, to launch the ISTOXX Ang Research Enhanced Index Suite. 

STOXX, like CIO, is owned by ISS STOXX.  

The new indexes will provide exposure to value, quality and momentum factors with the goal of mitigating unintended systematic exposures, limit turnover and maintain risk level bands in line with its benchmark indexes, according to a statement from STOXX and SEI. The indexes will also implement a dynamic rotation weighting model of the indexes’ underlying factors.  

“STOXX’s commitment to innovation and agility in delivering novel index solutions has long impressed me,” Ang said in a statement. “My career has been dedicated to advancing quantitative approaches that deliver meaningful results for investors, and this strategic collaboration provides a compelling opportunity to build on a shared vision to further refine factor-based index solutions at a pivotal time for the industry.” 

Ang, who is also the founder of financial technology firm Tau Balance, is a financial economist specializaing in quantiative investing. He was previously responsible for BlackRock’s factor investing strategies as managing director and head of factors, sustainable and solutions at the firm.  

Additionally, SEI announced the filing of an exchange-traded fund—the SEI Ang Research Enhanced U.S. Large Cap ETF (ANGU)—which will track the performance of the new STOXX indexes.  

“This ETF is a natural extension of SEI’s factor heritage and our continued build‑out of a thoughtfully designed ETF platform,” said Robert Hum, SEI’s head of investment product development and activation, in a statement. “We’re excited to partner with STOXX and their work with Andrew Ang, who has helped shape modern factor investing.”