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Diversified multi-factor approach built on US large-cap Russell 1000® Index
- Index captures low volatility, yield & momentum-oriented US stocks
- Addresses increasing client interest in multi-factor index approaches
FTSE Russell, the global index provider, today announced the launch of the FTSE Russell Focused Factor Indexes, now used as the basis for three new ETFs recently launched by State Street Global Advisors.
These three new indexes, which are based on the US large-cap Russell 1000® Index, are designed to provide exposure to US large-cap stocks exhibiting low volatility, yield or momentum characteristics respectively. In addition, each index benefits from factor diversification through additional tilts toward quality, value and size factors. The FTSE Russell Focused Factor Indexes are part of the FTSE Global Factor Index Series.
Ron Bundy, CEO North America Benchmarks, FTSE Russell, said:
“We are pleased to align with State Street Global Advisors to offer indexes as the basis for new ETFs. Our new Focused Factor Indexes draw on the extensive expertise of our FTSE Russell global index team and combine multiple factors to help investors meet their objectives.”
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), today announced the launch of three new smart beta ETFs based on the new indexes from FTSE Russell; the SPDR Russell 1000 Yield Focus ETF (ONEY), the SPDR Russell 1000 Momentum Focus ETF (ONEO) and the SPDR Russell 1000 Low Volatility Focus ETF (ONEV).
The new indexes from FTSE Russell are designed to address increasing client needs for multi-factor indexes and to help them address evolving markets and investment objectives. According to the first FTSE Russell retail financial advisor survey, published in September, smart beta index adoption by financial advisors is prevalent and broad-based. This survey - Smart Beta: 2015 survey findings from U.S. financial advisors - confirms an increased interest in, and adoption of, multiple smart beta indexes among retail financial advisors. Among new smart beta investment approaches tested in the survey, a multifactor (or Factor Combination) strategy showed the most potential for adoption, with 37% of financial advisors saying they would be very likely to use this approach, which combines multiple factors such as low volatility, quality and value.
More information on the FTSE Russell Focused Factor Indexes can be found on the FTSE Russell website.
