FTSE Russell Introduces Low Beta Equal Weight Index Series
– Expands Equal Weight Index Series to reflect performance of low beta securities
– Responds to investor demand for more efficient ways to combine factor exposures
– Invesco PowerShares to use as the basis for two new ETFs
FTSE Russell, the global index provider, today announced the launch of the FTSE Low Beta Equal Weight Index Series. This new index series represents an expansion of the Russell Equal Weight Index Series and combination of the unique market capitalization weighted and smart beta index development capabilities of FTSE Russell.
This new index series is designed to reflect the performance of securities exhibiting relatively low beta, or market volatility, where all index constituents are weighted equally. The new series initially includes two indexes based on well recognized market capitalization weighted benchmarks from FTSE Russell. The Russell 1000® Low Beta Equal Weight Index tracks US large cap stocks and the FTSE Developed ex-US Low Beta Equal Weight Index tracks large and mid-cap stocks from developed markets outside the US.
Ron Bundy, CEO Benchmarks North America, FTSE Russell, said:
“We are seeing growing demand in the investment community for more sophisticated indexes that can tap into market exposures efficiently and, in many cases, combine multiple factors. In this case, we are delighted that we can build on a very successful index concept which can help PowerShares target the specific exposures that their clients seek.”
Powershares today launched two new ETFs based on the new indexes from FTSE Russell; the PowerShares Russell 1000® Low Beta Equal Weight Portfolio (USLD) and PowerShares FTSE International Low Beta Equal Weight Portfolio (IDLB). This launch builds on successful recent introductions of the PowerShares Russell 1000® Equal Weight Portfolio (EQAL) in January and a new suite of Powershares ETFs based on the Russell Pure Style Index Series in May.
Dan Draper, Managing Director, Global Head, Invesco PowerShares, said:
“We’re excited to be rolling out two new low beta strategies to help our clients potentially reduce portfolio risk. And we are even more excited to expand on our successful alliance and join forces again with leading global index provider FTSE Russell.”
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 US financial advisors - confirms an increased interest in, and adoption of, multiple smart beta indexes among retail financial advisors. Survey results show that nearly half (48%) of the financial advisors surveyed use an equal weight index, or plan to use one in the near future, and more than half (52%) are already using or very likely to use a low volatility index.
More information on the FTSE Low Beta Equal Weight Index Series can be found on the FTSE Russell website.
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For further information:
Lucie Holloway or Harry Stein, +44 (0)20 7797 1222
Mark Benhard or Tim Benedict, +1 212 314 1199
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 80 countries, covering 98% of the investable market globally and trading on over 25 exchanges worldwide.
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