March 18, 2024

Indexing the world: Building a better global equity benchmark - FTSE GEIS

Global equity markets have grown and changed dramatically over the last thirty years. The FTSE Global Equity Index Series (GEIS) continues to capture this opportunity set.

It provides investors of all types with accurate, comprehensive coverage of global equity markets using an approach to index construction that is objective, modular, transparent and reliable. As the global investment landscape has evolved over time, so has FTSE GEIS thanks to our global perspective and dedicated index governance process.

FTSE GEIS is governed by a well-defined framework that draws from strong internal expertise, with support from external independent committees of leading market participants. As of December 2022, nearly $2 trillion in assets were benchmarked to FTSE GEIS, primarily through index-based funds like ETFs utilised by investors seeking comprehensive global equity market exposure.

What our research means for investors?

Highlights three important principles help define a good benchmark: objectivity, modularity and reliability. 

Points of differentiation:

  • FTSE GEIS is governed by a well-defined framework that draws from strong internal expertise, with support from external independent committees of leading market participants
  • By defining markets and securities on the basis of quantifiable, measurable attributes, FTSE GEIS delivers an unbiased representation of global equity markets and a reliable way for investors to track and measure market opportunities
  • Global equity markets have grown and changed dramatically over the last thirty years and because FTSE Russell is committed to providing accurate coverage of the global opportunity set via FTSE GEIS, users can rely on the indices to accurately capture this evolution

Key takeaways:

  • FTSE GEIS provides a robust global equity benchmark framework with coverage of the entire opportunity set, including large, mid, small, and micro cap companies across both developed and emerging markets
  • FTSE GEIS provides investors of all types with accurate, comprehensive coverage of global equity markets using an approach to index construction that is objective, modular, transparent and reliable
  • As of December 2022, $1.9 trillion tracked our global equity benchmarks, including FTSE GEIS