How indices are built - a technical deep dive with Jason Ye

Nov 30, 2025

In this discussion with Jason Ye, Director at S&P Dow Jones Indices, listeners explore the intricate world of index construction, including the S&P 500 and ASX 200. Jason shares his journey into factor-based investing and the appeal of dividend indices in Australia. He delves into how ETFs leverage these indices and the crucial role of index governance. AI's future in indexing and the significance of quantitative skills for aspiring professionals are also highlighted, making this a must-listen for investment enthusiasts.

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INSIGHT

S&P's Global Market Footprint

S&P Dow Jones Indices provides global benchmarks used across ETFs, mutual funds and derivatives to measure market performance.
About one third of global mutual funds and over one quarter of ETFs link to S&P Dow Jones indices, showing their market role.

INSIGHT

Three Practical Uses Of Indices

Indices serve three core purposes: benchmarks, underlyings for passive products like ETFs, and underlyings for derivatives.
Index providers do not manage assets, give investment advice, or perform individual security research.

ADVICE

Follow A Strict Index Product Lifecycle

Identify gaps in the market before designing an index and validate with research and stakeholder feedback.
Run historical backtests and market consultations, then monitor and evolve the methodology after launch.

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In this Australian Investors Podcast episode, your host Owen Rask speaks with Jason Ye, Director, Factors and Dividends, S&P Dow Jones Indices.

Together they discuss: – How indices like the S&P 500 and ASX 200 are constructed – The logic and application of factor investing – Dividend indices and their use in Australian investing – The rise and role of ETFs and their relationship with S&P indices Topics Covered – How Jason Ye built his career in factor-based investing and indexing – History and function of S&P Dow Jones Indices – How benchmark indices like the S&P 500 and ASX 200 are built – How factor indices work (dividends, value, quality, momentum, GARP) – How ETFs use indices and the licensing process – Why dividend investing is so popular in Australia – Yield strategies and the structure of dividend indices like aristocrats – What makes a good index and why index governance matters – Future of indexing: AI, free cash flow, and global product expansion Resources for this episode:

Jason's bio

Research to measure sustainable dividend yield

Research and Indexology

Rask Resources

Instagram: @rask.invest

TikTok: @rask.invest

DISCLAIMER:

This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg

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