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.
The next phase in the evolution of both smart beta and sustainable investing has begun. FTSE Russell is providing a flexible framework and tools to combine a variety of sustainability and risk premia factors together into new indexes.
Waqas Samad Appointed Group Director, Information Services Division
Mark Makepeace Appointed Non-Executive Chairman, Information Services Division
London Stock Exchange Group (“LSEG”, “the Group”) today announces that Waqas Samad is appointed Group Director of the Information Services Division (“ISD”) and a member of the LSEG Executive Committee, effective immediately. He...
New index Series tracks bonds whose proceeds are specifically used to finance climate or environmental projects
China is now second-largest green bond market globally - $37 billion issued in 2017
Growing global demand to incorporate ESG factors as a core part of investment and stewardship approaches
FTSE Russell has 15+ year track record in promoting sustainable investment
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