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Offered in suite of products:

    Our Philosophy
    We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

    Overview

    Minimize Tracking Error and Transaction Costs

    We manage index funds to minimize transaction costs and maximize liquidity to achieve low tracking error, leveraging our integrated technology platform, global scale, and decades of experience in portfolio management and trading.

    Benefits

    Effective Index Tracking Through Efficient Tracking Error Management

    Index Investing With Impact Through Sustainable Stewardship Practices

    Reliability from a Global Indexing Leader

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    Principles of Investing

    Manage Risk and Maximize Trading Efficiency During Rebalancing Events

    A disciplined and risk-aware investment process, backed by the size-and-scale of a trillion-dollar operating platform, enables us to keep trading costs down and navigate key events with confidence.

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    Industry Average Tracking Error Around Rebalancing Events (in basis points)

    Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining rebalancing/reallocation strategy. Source: eVestment Analytics, Northern Trust, as of July 31, 2023. The industry Average is derived from 10 products in the eVestment US Passive Russell 1000 Equity Universe -products containing an additional focus to index tracking such as tilting, sustainability, or tax-management are omitted from the analysis. Tracking error based on Russell 1000 rebalancing events every year end of June. Before rebalancing is May, during rebalancing is June, and after rebalancing is July. The shown values are average of 5-yearly rebalancing events.

    Principles of Investing

    Maintain Optimal Liquidity for Incremental Return Opportunities With Minimal Risk

    Replicating an index on any given day is not very difficult, but doing so consistently over several decades requires a deep understanding of how to navigate risk while finding the most efficient sources of return-mimicking exposures.

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    Excess Return vs Tracking Error for All Passive Equity (< 50bps TE)

    Source: eVestment Analytics, Northern Trust. As of June 30. 2023. All passive Equity universe is sourced from eVestment and consists of 311 total passive equity products with trailing 10-year tracking error less than 50 bps. Tracking error and excess returns are based on the Manager Preferred Benchmark for each strategy as defined in eVestment.

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    How it Works

    Build Diversified and Tailored Portfolios

    Optimizing transaction costs and risk tradeoffs while managing cash flows.1

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    How it Works

    Implementation

    Manage Trading Costs, Index Events, Market Access and Liquidity.

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    How it Works

    Risk Controls

    Portfolio Manager Monitoring, Compliance Oversight and Risk Management.

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    Who it's for

    Investors Seeking to Match the Performance of an Index

    Many decades of experience and scale drives index management decisions.

    Investors Seeking to Deliver Impact Through Their Portfolio's Index Allocations

    Creating impact for index investors through effective stewardship practices.

    Investors Seeking to Reduce Overall Portfolio Costs by Allocating to Index Strategies

    A global index framework backed by knowledge, experience and scale allowing low cost index management.

    Asset Allocation does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

    Portfolio

    Select a Strategy
    Strategy Name

    eVestment Universe
    Benchmark
    Inception Date
    Investment Vehicles Available

    Team Expertise

    We measure success as achieving investor outcomes and delivering an exceptional client experience.

    Jake Weaver

    Head of Equity Index ManagementRead Bio

    Brent D. Reeder

    Portfolio ManagerRead Bio

    Robert D. Anstine

    Portfolio ManagerRead Bio

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    Contact Us

    Interested in learning more about our investment strategies? 

    1Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

     

    Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices do not account for any fees, commissions or other expenses that would be incurred. Returns do not include reinvested dividends.

     

    The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market value weighted index with each stock's weight in the index proportionate to its market value.

     

    The Russell 1000 is a market capitalization-weighted index of 1,000 of the largest companies in the U.S. equity markets, the Russell 1000 is a subset of the Russell 3000 Index. The Russell 1000 comprises over 90% of the total market capitalization of all listed U.S. stocks, and is considered a bellwether index for large cap investing.

     

    The Russell 2000 Index is an unmanaged index that measures the performance of the small-cap segment of the U.S. equity universe.

     

    The Russell 3000 Index is unmanaged index comprised of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

     

    The MSCI All Country World Index ex USA Investable Market Index (IMI) captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 23 Emerging Markets (EM) countries. With 6,062 constituents, the index covers approximately 99% of the global equity opportunity set outside the U.S.

     

    The MSCI ACWI Index is a free float‐adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes.

      

    MSCI Emerging Markets is a Morgan Stanley Capital International Index that is designed to measure the performance of equity markets in 23 emerging countries around the world.

     

    MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australasia, and the Far East.

     

    The FTSE EPRA/Nareit Global Real Estate Index is a free-float adjusted, market capitalization-weighted index designed to track the performance of listed real estate companies in both developed and emerging countries worldwide. Constituents of the Index are screened on liquidity, size and revenue.

     

    The S&P Global Infrastructure Index is comprised of 75 of the largest publicly listed infrastructure companies that meet specific investability requirements. The Index is designed to provide liquid exposure to the leading publicly listed companies in the global infrastructure industry, from both developed markets and emerging markets. The Index includes publicly traded companies with stock traded on a developed market exchange with float-adjusted market capitalizations of a minimum of $100 million and minimum total market capitalizations of $250 million. Stocks must satisfy liquidity thresholds on 3 month average daily value trading of $1 million for developed markets and $500,000 for emerging markets.

     

    All securities investing and trading activities risk the loss of capital. Each portfolio is subject to substantial risks including market risks, strategy risks, advisor risk, and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profits or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe NTAM’s efforts to monitor and manage risk but does not imply low risk.

     

    Not FDIC Insured | May Lose Value | No Bank Guarantee

    Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.