UK index company FTSE has unveiled 12 “alternatively-weighted” products across the FTSE Developed and FTSE Emerging indices.
The Global Factor Index Series tilts the make up of the two market-cap indices by six characteristics:
The indices went live at the end of July and are based at 1000 from 20 September 2013.
Further releases for the series will include tilts toward multiple factors and a greater range of base indices.
FTSE research and analytics managing director Peter Gunthorp says the series is evidence of the firm’s innovation.
“The new index series applies a consistent and transparent methodology to achieving a controlled factor tilt to any underlying index,” he says.
“This allows investors the granularity and consistency that they require when developing benchmarking tools and results in a mechanism for the creation of index tracking funds and derivatives.”
Investor flow research by BlackRock shows smart beta ETFs hauled in a record $65.1bn (£38.6bn) in 2013, up from $32.2bn the previous year.