FTSE Russell Introduces Focused Factor Indexes
– Diversified multi-factor approach built on US large-cap Russell 1000® Index
– Index captures low volatility, yield & momentum-oriented US stocks
– Addresses increasing client interest in multi-factor index approaches
FTSE Russell, the global index provider, today announced the launch of the FTSE Russell Focused Factor Indexes, now used as the basis for three new ETFs recently launched by State Street Global Advisors.
These three new indexes, which are based on the US large-cap Russell 1000® Index, are designed to provide exposure to US large-cap stocks exhibiting low volatility, yield or momentum characteristics respectively. In addition, each index benefits from factor diversification through additional tilts toward quality, value and size factors. The FTSE Russell Focused Factor Indexes are part of the FTSE Global Factor Index Series.
Ron Bundy, CEO North America Benchmarks, FTSE Russell, said:
“We are pleased to align with State Street Global Advisors to offer indexes as the basis for new ETFs. Our new Focused Factor Indexes draw on the extensive expertise of our FTSE Russell global index team and combine multiple factors to help investors meet their objectives.”
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), today announced the launch of three new smart beta ETFs based on the new indexes from FTSE Russell; the SPDR Russell 1000 Yield Focus ETF (ONEY), the SPDR Russell 1000 Momentum Focus ETF (ONEO) and the SPDR Russell 1000 Low Volatility Focus ETF (ONEV).
The new indexes from FTSE Russell are designed to address increasing client needs for multi-factor indexes and to help them address evolving markets and investment objectives. According to the first FTSE Russell retail financial advisor survey, published in September, smart beta index adoption by financial advisors is prevalent and broad-based. This survey - Smart Beta: 2015 survey findings from U.S. financial advisors - confirms an increased interest in, and adoption of, multiple smart beta indexes among retail financial advisors. Among new smart beta investment approaches tested in the survey, a multifactor (or Factor Combination) strategy showed the most potential for adoption, with 37% of financial advisors saying they would be very likely to use this approach, which combines multiple factors such as low volatility, quality and value.
More information on the FTSE Russell Focused Factor Indexes can be found on the FTSE Russell website.
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Mark Benhard or Tim Benedict, +1 212 314 1199
Lucie Holloway or Harry Stein, +44 (0)20 7797 1222
Notes to editors:
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance, and embraces the IOSCO principles. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit ftserussell.com.
About State Street Global Advisors:
For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.2 trillion as of September 30, 2015. Assets under management include approximately $25 billion as of September 30, 2015, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.