When viewed from the eyes of an astronaut, the world may look very similar from country-to-county, continent-to-continent. And, similarly, when viewed through the lens of a broad global or regional index, individual countries may lose some of their distinct characteristics.
To help illustrate this point, FTSE Russell recently examined 16 of its single country indexes and two of its broad global and regional indexes to get a better sense for how individual markets compare to each other and to their broad benchmark. FTSE Russell examined price-to-equity, price-to-book, price-to-sales and dividend yield:
Alec Young, managing director, investment strategist, FTSE Russell:
“Country equity fundamentals vary widely across Developed and Emerging markets. As such, access to country level exposure allows investors to surgically target desired fundamental attributes such as dividend yield or valuation.”
Patrick O’Connor, head of global ETFs for Franklin Templeton Investments:
“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 ETFs.”
This analysis was gathered from 18 new indexes measuring performance of 16 individual and two global regions based on the FTSE All-World® Index Series. These indexes underlie a new series of ETFs from Franklin Templeton.
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