Risk-based indexes are an important category of smart beta—they target different objectives and are commonly used to complement allocations to traditional capitalization-weighted approaches. In this article, we explore the most popular types of risk-based indexes and summarize their objectives.
REITs have enabled investors of all types to gain access to a regular income stream, a diversified portfolio of underlying properties and a link to the capital values of the portfolio holdings by means of companies with securities listed on a public stock exchange.
Examining the emergence of factor investing strategies and their uses within an institutional portfolio
Factor investing is growing in popularity. But how does it help investors manage their portfolios? In this article we show how factors draw upon the substantial heritage of quantitative investing to produce a versatile tool for use in a variety of investment contexts.
The Value style continued to assert its leadership in the cycle of style performance. Index data demonstrates that, regardless of cap size, defensive characteristics —companies with less economic sensitivity and more stable earnings profiles — are showing strength for the year, as are Value companies, as determined by higher relative Book-to-Price characteristics.
The first wave of smart beta index products was concerned with addressing index concentration and reducing volatility. Such products embed a set of implicit factor outcomes and were followed by products that explicitly targeted specific factor outcomes. In this article we provide an overview of why factors matter and how investors are using them.
As growing interest in smart beta is driven by risk- and return-based considerations, we provide examples of how smart beta indexes are being used by and illustrate the current use of smart beta through three case studies involving our clients.
There have been positive recent developments to open up the onshore Chinese bond market. This paper provides insights to the onshore China bond market by comparing characteristics of the FTSE Onshore China Bond Index Series and the European government bond markets.
Insights on what happened to the US listed real estate market during the most recent three periods of increases in the Fed Funds rate, giving special attention to the performance of different real estate sub-sectors.
G4S and Segro to join FTSE 100
Hikma Pharmaceuticals and Intu Properties to enter FTSE 250 in rebalance
FTSE Russell, the global index provider, confirms today that G4S and Segro will be joining the FTSE 100 Index. In the rebalance, Hikma Pharmaceuticals and Intu Properties will leave the UK’s leading index and enter the FTSE 250 Index.
The rules-driven impartial quarterly reviews...
The first quarter of 2017 saw a reversal of a year long run for value stocks which, at the end of 2016, held a 16 percentage point lead over growth stocks. A shift in style towards growth stocks—companies whose prices tend to be based on potential vs. actual earnings—in both the large cap and small cap segments of the market is often an indication of an optimistic market sentiment. The Russell 2000 style indexes help to understand the latest market movements.
Large cap China A-shares have turned the performance tables relative to mid and small cap China A-shares as measured by China A-share indexes from global index provider FTSE Russell. After declining 4.3% in the 10 year period ended June 1, 2017, the FTSE China A Large Cap Index value has risen 5.4% in 2017. The FTSE China A Mid Cap Index and FTSE China A Small Cap Index values, on the other hand, have both declined in 2017 after rising 30.3% and 61.7%, respectively, over the last decade.
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