— Unique multi-factor indexes from FTSE Russell are powerful tools for investors
— O’Shares ETFs based on FTSE Russell indexes popular with investors
— Firms ring NYSE closing bell to celebrate important milestone
FTSE Russell, a leading global index provider, and O’Shares Investments today announced the one year anniversary of their collaboration. In the past year, O’Shares has introduced a new suite of exchange traded funds (ETFs) based on innovative new multi-factor indexes from FTSE Russell.
Ron Bundy, CEO North America Benchmarks at FTSE Russell, said:
“As the investment landscape evolves and investors use a broader array of index-based investment tools to pursue their objectives, FTSE Russell is at the forefront of smart beta index innovation. Combining our expertise in index design with the client focus, growth mind set and entrepreneurial spirit of O’Shares Investments in the last year has benefitted a wider set of market participants.”
Kevin O’Leary, Chairman of O’Shares Investments, “Shark Tank” cast member and CNBC contributor:
“We came to FTSE Russell a year ago requesting a non-traditional index-based investment approach to help our ETF clients pursue equity market growth with downside protection. The FTSE Russell team delivered a unique new set of indexes that have outperformed their benchmarks and helped us make a major difference for our investors. We look forward to collaborating with our FTSE Russell partners in the years to come.”
In July 2015, in consultation with O’Shares, FTSE Russell introduced three multi-factor indexes designed to track the performance of stocks in various global regions. The indexes are designed to select stocks exhibiting relatively low volatility and high dividend yields. Index constituents are selected from FTSE Russell parent indexes and weighted based on quality, volatility and yield characteristics, with individual index constituents capped at 5% quarterly to avoid over-concentration. All three indexes have outperformed their parent indexes in in the year since they were launched while exhibiting lower volatility, with index return differentials ranging from +5.5% (FTSE Europe) to +8.6% (FTSE Asia) to +11.5% for the FTSE US Qual/Vol/Yield Factor 5% Capped Index (Source: FTSE Russell, data as of July 29, 2016)1.
|FTSE US Qual/Vol/Yield Factor 5% Capped Index||FTSE USA|
|FTSE Developed Europe Qual/Vol/Yield Factor 5% Capped Index*||FTSE Developed Europe|
|FTSE Developed Asia Pacific Qual/Vol/Yield Factor 5% Index*||FTSE Developed Asia Pac|
*These indexes have a US dollar hedged and unhedged version.
O’Shares has introduced ETFs based on these indexes in the last year that have seen significant inflows. The flagship O’Shares FTSE US Quality Dividend ETF (NYSE: OUSA) has attracted strong asset growth from a range of institutional and retail investors since its inception last July and stood at approximately $273 million in client assets at July 31. The suite of new ETFs from O’Shares based on these three indexes has generated approximately $330 million in client assets in their first year (Source: XTF).
Employees from the two firms along with clients will celebrate the partnership later today with a special closing bell ceremony at the New York Stock Exchange.
1 Past performance is no guarantee of future results. Index returns shown may not represent the results of the actual trading of investable assets.
– Ends –
For further information:
Mark Benhard +1 212 314 1199; firstname.lastname@example.org
Notes to editors:
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.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
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 any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or 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.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any 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.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.