Skip to main content

You are here

Blog Listing Page

Index IDEA: Five years of smart beta

Results from FTSE Russell’s fifth annual global institutional smart beta survey, shared earlier this week, confirm that awareness and utilization of smart beta index-based investment strategies continues to grow among global institutional investors, with a 16% increase in smart beta implementation or consideration by global asset owners over the past five years.

In addition, results highlight emerging trends in the smart beta index space, specifically the growing use of multi-factor combination smart beta index-based investment strategies and the recent rise of ESG investment strategies.

 

Source: FTSE Russell - Smart beta: 2018 global survey findings from asset owners.

Rolf Agather – managing director, North America research, FTSE Russell

“With five years of results for our global smart beta survey, we are able to offer unique insight across the industry on how the preferences and needs of our global clients are changing. Notably, our findings illustrate the growing awareness and usage of multi-factor and ESG smart beta indexes in recent years.”

In addition, according to ETF data and analytics provider XTF, global assets under management in ETFs tracking smart beta indexes have nearly doubled since January 2014, when the FTSE Russell survey was first fielded, increasing from $435.6 billion to $804.3 billion as of April 30, 2018. ETFs based on multi-factor and ESG smart beta indexes saw similar asset growth, increasing from $14.1 billion to $35.1 billion and $6.5 billion to $14.8 billion, respectively, from January 2016 through April 30, 2018.

Get more information on the 2018 FTSE Russell Global Institutional Smart Beta Survey.

 

---------------

© 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”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed Income LLC (“FTSE FI”) and (7) The Yield Book Inc. (“YB”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX, MTS Next Limited, Mergent, FTSE FI and YB. “FTSE®”, “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®” , “WorldBIG®”, “USBIG®”, “EuroBIG®”, “AusBIG®”, “The Yield Book®”, and all other trademarks and service marks used herein (whether registered or unregistered) are trademarks 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, FTSE TMX, Mergent, FTSE FI or YB. “TMX®” is a trademark of TSX Inc. "XTF®" and other service marks and trademarks related to the XTF Information are trademarks of LSEG Information Services (US), Inc. and are used under licence.

All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided "as is" without warranty of any kind. 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 accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the FTSE Russell Indexes for any particular purpose to which they might be put. Any representation of historical data accessible through FTSE Russell Indexes is provided for information purposes only and is not a reliable indicator of future performance.

Views expressed by Rolf Agather of FTSE Russell are as of May 24th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, such information.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing contained in this document or accessible through FTSE Russell Indexes,  including statistical data and industry reports, should be taken as constituting financial or investment advice or a financial promotion.

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 data requires a licence from FTSE, Russell, FTSE TMX, MTSNext, Mergent, FTSE FI, YB and/or their respective licensors.

Blog Listing Page