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- Expands upon FTSE Russell’s innovative family of U.S. style indexes
- A more concentrated “smart beta” version of Russell Growth & Value Indexes
- Invesco PowerShares to use as basis for new set of ETFs
FTSE Russell, a leading global index provider, today announced the launch of the Russell Pure Style® Index Series. An extension of the Russell Growth and Value Indexes, the series is designed as a more concentrated and targeted measure of stocks exhibiting strong growth or value characteristics, providing an added dimension to investors seeking additional ways of managing their U.S. equity style exposures.
The new series will initially include eight indexes covering the Russell Top 200®, Russell Midcap®, Russell 1000® and Russell 2000® Pure Growth and Value Indexes. The Russell Pure Style Index methodology includes only those stocks that are classified as pure growth or pure value and does not include stocks which exhibit both growth and value characteristics. In addition, the stocks in the Russell Pure Style indexes are style score-weighted rather than market cap-weighted. The new indexes complement the original Russell Growth and Value Indexes.
The Russell Pure Style Indexes can serve as the basis for exchange traded funds (ETFs) and institutional asset mandates. Invesco PowerShares Capital Management has licensed the indexes to form the basis for a new set of ETFs launching today.
Ron Bundy, CEO Benchmarks North America, FTSE Russell, said:
“We are delighted to tap into our capabilities for index innovation and offer expanded tools to meet growing investor needs while building on our growth and value index leadership in the U.S. We are also pleased that Invesco PowerShares has decided to use the indexes as the basis for a new suite of ETFs.”
FTSE Russell was the first index provider to measure and identify style investing when Russell Indexes launched its growth and value indexes in 1987 after recognizing that some money managers primarily purchased either “growth” or “value” stocks. At the end of 2014, more than $2.2 trillion in assets were benchmarked to the Russell style indexes across various U.S. asset classes and these indexes formed the basis for nearly 1,800 retail and institutional investment products. Today, 99% of all U.S. institutional equity products that are benchmarked to a style index are benchmarked to Russell.
For more information on the Russell Pure Style Indexes including a new video go to the FTSE Russell website.
