And the FTSE All-World Developed Minimum Variance Index, which weights stocks according to their lower relative historical return volatility, has had a stronger return than the market cap weighted FTSE All-World Developed Index for the year-to-date, one-year, three-year, five-year and ten-year periods ended 5 May 2016.
Gareth Parker, senior director, research and analytics at FTSE Russell:
“Long-term growth for the FTSE All-World Developed Minimum Variance Index relative to the FTSE All-World Developed Index helps illustrate the effect that reducing overall index volatility while maintaing broad diversification may have on index performance over the longer term. This also helps demonstrate the value of working with a sophisticated global index provider that can work with clients to design indexes to help them better meet their overall investment objectives.”
Francois Millet, head of product line management ETF & indexing, Lyxor Asset Management:
“We like the fact that FTSE Russell has gone a step further than most providers of minimum variance indexes in its design of the FTSE All-World Developed Minimum Variance Index, applying diversification targets to reduce concentration and sector biases. Using this index as the basis for the Lyxor FTSE All World Minimum Variance UCITS ETF has allowed us to create a more diversified minimum variance ETF.”
FTSE All-World Developed Minimum Variance Index
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