IndexUniverse has rolled out a hierarchical, rules-based classification system for exchange-traded funds, the ETF Classification System (ECS). The system, which is designed to divide ETFs into distinct, non-overlapping buckets, will make it easier for investors, analysts, fund sponsors and the media to identify ETFs competing in the same areas of the market. The system is designed with seven levels, including asset class, development status and region. The system, which is monitored on a weekly basis, is supported by two advisory boards, one featuring a representative from every major ETF or ETN issuer in the U.S. and another composed of financial advisers who use ETFs in their day-to-day practice.

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