Clearly, 2019 was a banner year for global developed and emerging equity markets as reflected by the FTSE RIC Capped Index Series. Uniform positive returns were headlined by Russia (+53.4%), Switzerland (+33.5%) and Canada (+29.5%).
Yet as good a year as we had in 2019, it was unusual to see such a broad-based global rally. Experts from FTSE Russell and Franklin Templeton suggest that, based on history, we may see more diversity of return in 2020.
Rolf Agather, managing director, applied research, FTSE Russell:
“Looking back, 2019 was a very strong but also quite an unusual year for the global equity markets. Who could have foreseen a 53.4% return for Russia, or a 28.1% rise for Brazil? Investors enjoyed a year that saw a positive return for nearly every global equity market, however this will likely not be the case in 2020 as history has proven time and again that individual countries and regions can perform quite differently over time. This underscores the need for broad diversification across global markets with indexes an effective way for investors to capture precise market exposures.”
Patrick O’Connor, head of global ETFs for Franklin Templeton:
“The goal of our collaboration with FTSE Russell is to provide advisors and investors with the ability to access a comprehensive suite of non-US single country or regional ETFs across developed and emerging markets. This gives investors the tools they need to allocate both strategically and tactically to countries and regions in which they have strong conviction.”
Franklin Templeton offers 23 single country and regional ETFs based on the FTSE Global RIC Capped Indexes.
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