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Index IDEA: Around the world with Franklin Templeton and FTSE Russell

Many countries have exhibited lower than average correlation to the US equity markets over time, according to new research from FTSE Russell. The information is based on indexes which underlie new ETFs recently launched by global investment leader Franklin Templeton.

The information from the FTSE Global Equity Index Series shows that single country indexes measuring Brazil, South Korea, China, Japan and France had a lower correlation to the Russell 1000 Index than that of the FTSE All-World ex US Index. And, in fact, for Brazil, South Korea and China the correlation percentage was less than .50. 

Alec Young, managing director, global markets research, FTSE Russell, said:

“Investors using international investments to add equity diversification to their portfolios can also consider country level exposure. Many major countries like Brazil, South Korea, China, Japan and France have exhibited lower historical correlations to US stocks than broader indexes covering non-US markets.”

Patrick O’Connor, head of global ETFs for Franklin Templeton Investments, said:

“The goal of our new collaboration with FTSE Russell is to provide investors with the ability to gain access to a diversified set of efficient non-US market exposures through our new series of index-based international ETFs.”

This analysis was gathered from 18 new indexes measuring performance of 16 individual countries and two global regions based on the FTSE All-World Index Series and underlying a new series of ETFs from Franklin Templeton.

 Get more information on FTSE Global RIC Capped Indexes.

  

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 Views expressed by Alec Young of FTSE Russell and Patrick O'Connor of Franklin Templeton are as of November 7th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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