- FTSE DBI Developed Index
- FTSE DBI Developed ex US Index
- FTSE DBI Developed ex Japan Index
The investment philosophy behind the FTSE DBI Index Series is that both geography and industry are the primary drivers of global equity risk and return; and that market sentiment can lead to momentum effects, causing concentration risk in market-cap weighted indexes. A diversified portfolio helps to avoid this concentration risk and lessens downside risk. Using a transparent, rules-based formula, the indexes diversify exposure by re-weighting countries and industries to avoid concentration risk and momentum effects. Risk assessment will occur annually and index rebalancing will occur quarterly.
The indexes are derived from the FTSE All-World Index Series, which is market-cap weighted and made up of large and mid-cap companies across all regions globally. Over the past 5-years, FTSE DBI Developed Indexes have consistently outperformed their All-World equivalents, as demonstrated by the graph below.
“DBI seeks to address macro and behavioural inefficiencies in global and international equity markets by developing a diversified exposure to macro risk factors. This differentiated approach is a compliment to both traditional and other alternatively weighted indexes.” said James Norman, President, QS Investors, LLC.
“We are pleased to partner with QS Investors to create the FTSE DBI Index Series,” said Mark Makepeace, CEO, FTSE Group. “They are a valuable addition to FTSE’s growing family of investment strategy indexes.”