Blog

By: Mary Fjelstad, senior research analyst

Historically, small cap stocks have tended to perform more strongly than the broader market when risk appetite is higher. So why, despite a notable appetite for stock market risk in 2017, did small caps not outperform large caps last year, and why are they still worth investors' consideration?

According to a recent FTSE Russell survey, US financial advisors are aware of the existence of smart beta index-based strategies, yet they are still unfamiliar on how smart beta works and are in need of much more education.

By: Tom Goodwin, senior research director

Investors’ interest in smart beta has increased significantly in recent years, with a specific focus on factor investing. By some counts, more than 300 factors have now been "discovered". But in a zoo of 300, how can anyone sort through the herd to reach a Noah’s Ark of sustainable species that will generate a complete factor universe of sturdy, long run return premiums? Here, we outline the process at FTSE Russell.

A recent FTSE Russell survey of Canadian financial advisors indicates growing interest in exchange traded funds, or ETFs, for client portfolios while highlighting what they are looking for when selecting ETF products.

By: Fong Yee Chan, senior product manager, sustainable investment

On January 10, New York City officials announced plans to divest its pension funds of about $5 billion in fossil fuel investments. As a growing number of investors seek to address climate change risk, this initiative represents one of the more significant divestment efforts to date. At FTSE Russell, we believe there’s a range of ways to integrate climate change into investment. The FTSE Global Climate Index Series offers various approaches, ranging from fossil fuel divestment to our most evolved and holistic approach that also integrates opportunities arising from the transition to a low carbon economy.

As FTSE Russell launched its second smart beta index survey of financial advisors earlier this week at #InsideETFs, the global index provider also hosted a special panel discussion – Breakfast of Champions.

By: Mary Fjelstad, senior research analyst

Lately we’ve become accustomed to political reversals and upheavals having a significant impact, both immediate and long term, on equity market performance – think Brexit and UK stocks, for instance. The Catalonian independence movement in Spain is the most striking current example of this phenomenon, with a clear effect on both Spanish and Eurozone stock market performance in 2017.

Rising interest rates have helped create a sharp divide in YTD US large cap sector performance, with strong returns for US large cap Russell 1000® Index cyclical sectors and significant negative returns for counter-cyclical sectors year-to-date as of January 10.

The past year’s steady decline in the US dollar relative to foreign currencies has translated into higher returns for non-US indexes based in US dollars.

By: Ron Bundy, FTSE Russell CEO Indexes

When most people think about innovation, they likely imagine a lone genius toiling anonymously in a laboratory. The more common reality is that innovation comes from a team of people combining talents and ideas. We’ve seen this firsthand in developing the Russell series of indexes, and even more so as we built relationships with other market participants.