The world of index-based investing is in flux as ESG integration into passive is on course to become the norm for new mandates. In the last year there has been a quiet revolution taking place as asset owners have been moving to integrate ESG into index designs for new mandates on core passive portfolios.
In 2015 FTSE Russell launched a series of international equity indexes for the USD-based investor that are 50% USD hedged to help investors evaluate their currency exposures and their hedging strategies when investing in foreign equities. This paper updates the research on the behavior of these indexes through June 2017; the results are consistent with earlier published findings.
We focus on some smart beta index construction approaches that follow relatively simple, intuitive weighting schemes. Regardless of their methodology, all FTSE Russell smart beta indexes follow transparent, consistent rules in order to achieve the stated index objectives.
It wasn’t too long ago that the concept of factors in investing was the exclusive province of professors of finance and a few active “quant” managers. Mainstream portfolio construction was focused primarily on asset allocation. Within equities, that meant achieving the right balance in allocation to various segments such as large cap and small cap, country and sector, and perhaps value and growth styles.
Equal weighting is the oldest of alternative weighting methods and it has had staying power for good reason. We explore the attributes of equal weighting and explore FTSE Russell’s enhanced methodology, which has an added benefit over simple constituent equal weighting by enhancing sector diversification.
FTSE Russell has designed the FTSE Blossom Japan Index to help investors and other market participants integrate and promote ESG considerations. The index can be used to enhance ESG exposure while maintaining the index characteristics of a broad market benchmark, and also provides a strong basis for corporate engagement.
No changes to the constituents of the STI
FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index (STI), following the March quarterly review.
The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Mapletree Commercial Trust, Suntec REIT,...
Two changes to the FTSE 100
Just Eat and Phoenix Group Holdings to join FTSE 100
Five changes to the FTSE 250
FTSE Russell, the global index provider, confirms today that Just Eat and Phoenix Group Holdings will be joining the FTSE 100 Index as a result of the March 2019 quarterly review. In the rebalance, GVC Holdings and Wood Group (John) will leave the FTSE 100 index and e...
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