FTSE Global Sector indices offer maximum tradability with minimum turnover. The most liquid sector in the series, FTSE Global Tech, can allow a US$1 billion global trade to be completed in an average of under one hour. Even the most complex sector, FTSE Global Autos, only takes an average of eight hours to execute the same trade.
These tradable indices are a logical development supporting the trend towards sector-based investment and will be used in conjunction with the broader based FTSE All-World sector indices which are used by fund managers worldwide as a wide-ranging portfolio analysis tool. The blue-chip FTSE Global Sector indices represent the most popular 11 groups from the 39 sectors of the FTSE Global Classification system. They are specially designed to support trading products.
From the first day of trading, Merrill Lynch, one of the world’s largest investment banks, will introduce a worldwide range of OTC and listed products including warrants, certificates, notes and funds on the indices. FTSE anticipate that other securities houses will launch similar products soon. Exchange traded funds and derivatives are expected to follow thereafter.
FTSE Global Sector indices will be calculated in real-time while the world’s major markets are open. Full detail of the indices, including constituent lists and Ground Rules are available at http://www.ftse.com/global-sectors.html
Mark Makepeace, FTSE Chief Executive said: “ FTSE is launching the world’s first and most tradable global sector indices. These products are truly global, in terms of market reach, customer base and product availability. The continuing shift toward sector-based investment is driving the demand for tradable global sector indices.
“We believe that institutional and retail investor demand for sector- based investing is rising rapidly. With these indices, FTSE has created a unique set of global benchmarks to help investors track the world’s most liquid sectors,” said Isolde Regensburger at Merrill Lynch.
