(Reuters) -Index provider MSCI ( MSCI ) reported a rise in second-quarter profit on Tuesday, as improved spending by clients drove up demand for its index products and analytics services.

WHY IT'S IMPORTANT

MSCI's ( MSCI ) results often reflect sentiment in the broader market, as clients use the company's stock indexes and other tools to help them evaluate their investments.

KEY QUOTE

"We saw more cash flows into equity ETFs tied to our indexes than any other index provider," MSCI ( MSCI ) chairman and CEO Henry Fernandez said.

BY THE NUMBERS

Recurring subscriptions in its index segment rose nearly 9% to $235.6 million in the second quarter from a year earlier, driven by growth from market-cap weighted index products.

Total operating revenue rose nearly 9% to $772.7 million, helped by higher recurring subscription revenues.

Operating expenses increased 6.8%, as the company spent more on employee compensation and benefits.

The data provider posted a profit of $303.7 million for the quarter ending June 30, or $3.92 per share, compared with $266.8 million, or $3.37 per share, a year earlier.

KEY CONTEXT

Markets had a turbulent start in April due to U.S. President Donald Trump's shifting tariff policy, but a robust labor market and consumer spending fueled an equities market rally later in the quarter.

The volatility index, which reflects the extent to which investors are snapping up protection against volatility, reached record levels but retreated later on expectations of trade deals.