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.
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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.
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