– Diversified multi-factor approach built on US large-cap Russell 1000® Index
– Index captures low volatility, yield & momentum-oriented US stocks
– Addresses increasing client interest in multi-factor index approaches
FTSE Russell, the global index provider, today announced the launch of the FTSE Russell Focused Factor Indexes, now used as the basis for three new ETFs recently launched by State Street Global Advisors.
These three new indexes, which are based on the US large-cap Russell 1000® Index, are designed to provide exposure to US large-cap stocks exhibiting low volatility, yield or momentum characteristics respectively. In addition, each index benefits from factor diversification through additional tilts toward quality, value and size factors. The FTSE Russell Focused Factor Indexes are part of the FTSE Global Factor Index Series.
Ron Bundy, CEO North America Benchmarks, FTSE Russell, said:
“We are pleased to align with State Street Global Advisors to offer indexes as the basis for new ETFs. Our new Focused Factor Indexes draw on the extensive expertise of our FTSE Russell global index team and combine multiple factors to help investors meet their objectives.”
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), today announced the launch of three new smart beta ETFs based on the new indexes from FTSE Russell; the SPDR Russell 1000 Yield Focus ETF (ONEY), the SPDR Russell 1000 Momentum Focus ETF (ONEO) and the SPDR Russell 1000 Low Volatility Focus ETF (ONEV).
The new indexes from FTSE Russell are designed to address increasing client needs for multi-factor indexes and to help them address evolving markets and investment objectives. According to the first FTSE Russell retail financial advisor survey, published in September, smart beta index adoption by financial advisors is prevalent and broad-based. This survey - Smart Beta: 2015 survey findings from U.S. financial advisors - confirms an increased interest in, and adoption of, multiple smart beta indexes among retail financial advisors. Among new smart beta investment approaches tested in the survey, a multifactor (or Factor Combination) strategy showed the most potential for adoption, with 37% of financial advisors saying they would be very likely to use this approach, which combines multiple factors such as low volatility, quality and value.
More information on the FTSE Russell Focused Factor Indexes can be found on the FTSE Russell website.
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Notes to editors:
About FTSE Russell:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.
For more information, visit www.ftserussell.com.
© 2018 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
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