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Index IDEA: YTD performance for multi-factor US stock index

Index IDEA: Examining YTD performance for high quality, low volatility, dividend-paying US stock index

To gain insight into the impact of certain market factors on US equity market peformance in 2016, global index provider FTSE Russell examined year-to-date performance through the lens of a new multi-factor index. The FTSE USA Qual / Vol / Yield Factor 5% Capped Index, which measures performance of higher quality, lower volatility, dividend-paying US mid- and large-cap stocks, has risen 0.8% year-to-date as of Feb 22 as compared to a 4.9% decrease for the parent FTSE USA Index.

Source: FTSE Russell. Past performance is no guarantee of future results. Please see the end for important legal disclosures.

Guillermo Cano, Director, Alternatively Weighted Indexes, FTSE Russell:
“We’ve seen growing interest by market participants in indexes that can represent the performance of individual market factors or a combination of factor characteristics which have been shown to impact company performance over time. And we have seen very interesting results for these indexes over various time periods, in particular during periods of market volatility as we have seen year-to-date.”

Kevin O’Leary, Chairman of O’Shares, “Shark Tank” cast member and CNBC contributor:
“Comparing year-to-date performance of the FTSE USA Qual/Vol/Yield Factor 5% Capped Index to the performance of the FTSE USA Index helps provide insight into the effects of selecting high quality, low volatility US stocks that pay consistent dividends. Multi-factor indexes like this which can select stocks with specific characteristics are an important and innovative new tool for examining markets and creating investable products.”  

The FTSE USA Qual/Vol/Yield Factor 5% Capped Index (FUSYQVCF) is designed to reflect the performance of high quality U.S. Large and Mid Cap equities exhibiting relatively low volatility and high dividend yields. Constituents are selected and weighted based on Quality, Volatility and Yield characteristics. The Index is part of the FTSE Global Factor Index Series, a new suite of benchmarks designed to represent the performance of specific individual factor characteristics or a combination of these factors.


© 2016 London Stock Exchange Group companies.

London Stock Exchange Group companies includes FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc (“FTSE TMX”). All rights reserved.

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Views expressed by Guillermo Cano  and Kevin O’Leary are as of February 24th and subject to change. These views also don’t necessarily reflect the opinion of FTSE Russell or the London Stock Exchange Group.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication.

Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

The London Stock Exchange Group companies do not provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.

This publication may contain forward-looking statements. These are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statements speak only as of the date they are made and neither London Stock Exchange Group companies nor their licensors assume any duty to and do not undertake to update forward-looking statements.





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