Blog

By: Tom Goodwin, senior research director

A lively debate has begun regarding the best way to combine several factors into a single index. At FTSE Russell, we have created a bottom-up sequential tilting or “tilt-tilt” methodology. Unlike a top-down approach—which simply takes the weighted average of single factor indexes—we found the tilt-tilt methodology minimizes the dilution of competing factors.

By: Tom Goodwin, senior research director

US equities have continued to move upward – especially small caps. As periods of sustained growth continue, market participants begin to question how much longer until this bull market dies. Here, I will look at some of the current data points and see how they compare to historical averages.

When viewed from the eyes of an astronaut, the world may look very similar from country-to-county, continent-to-continent. And, similarly, when viewed through the lens of a broad global or regional index, individual countries may lose some of their distinct characteristics.

Last week, Japan reported a 1.4 percent annualized GDP growth rate for the third quarter, slightly above the media estimate of 1.3 percent. Notably, this represents the seventh straight quarter of Japanese economic expansion, nearly matching an eight quarter run from the second quarter of 1999 through the first quarter of 2001.

By: Mary Fjelstad, senior research analyst

Many US-based investors seek the benefits of diversification through a portfolio of international equities. Leaving the foreign exchange exposures of such a portfolio unhedged, however, creates an embedded currency basket of long positions in foreign currencies coupled with a 100% short position in the US dollar (USD). How can investors better understand the currency risks embedded in their international portfolios?

This Green Investment Challenge by Christiana Figueres highlights the increasing focus on companies that are contributing to the green economy through environmental products and services.

Quality and Value traded places as the lead driver of US large cap equity market performance in 2017, with quality-oriented stocks taking the lead within the Russell 1000 Index through the end of September according to FTSE Russell and OppenheimerFunds.

By: Tony Campos, director, ESG product management

As the corporate stewardship trend grows in popularity, investors around the world are proactively taking steps to align stewardship and investment activities in a way that integrates ESG considerations. FTSE Russell is responding with new index tools to help them achieve their goals.

Many countries have exhibited lower than average correlation to the US equity markets over time, according to new research from FTSE Russell. The information is based on indexes which underlie new ETFs recently launched by global investment leader Franklin Templeton.

As a result of the raft of economic reforms in Saudi Arabia, it was announced in September 2015 that the kingdom had been placed on FTSE Russell’s Watch List for inclusion in its global indexes (FTSE GEIS) as a Secondary Emerging Market. For those interested in monitoring the potential effect of this change in the interim, FTSE Russell has created the FTSE Saudi Arabia Inclusion Index Series.