Why Choose FTSE Russell Index-Linked Investment Products?
While you can't invest directly in an index, asset managers license indices to create various investment vehicles, from ETFs and mutual funds to structured products. Many investors prefer passive strategies for their ability to accurately capture targeted exposures and for their cost-efficiency.
But did you know that a better constructed index can help you achieve your investment objectives with more precision and drive better investment outcomes? At FTSE Russell, our approach combines rules-based, research-driven methodologies with strong, independent governance to create high-quality indices. When you choose an investment product based on a FTSE Russell index, you can trust that it accurately represents your selected market.
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Exchange Traded Funds (ETFs)
FTSE Russell indices are used by ETF issuers in every corner of the world to create high-quality ETFs across all asset classes and investment strategies. Download our regional lists of ETFs benchmarked to FTSE Russell indices.
Derivatives
FTSE Russell Index-based derivatives include futures and options, financial contracts that provide investors with exposure to the performance of an asset class or group of stocks in a single trade. They are often used as risk-hedging tools bought with the expectation that the value of the underlying index will increase or decrease during the time of the contract. Investors choosing these products can gain access to more difficult to reach asset classes, regions and categories.
FTSE Russell does not distribute futures or options products. These products are listed for trading on the exchanges noted below; please contact the exchange or your broker for more information.
Your Index Matters. Find out why
The index you choose makes a difference: FTSE Russell indices are rigorously constructed, offer comprehensive coverage, and a transparent methodology.
Index Education
Educational webinars and videos with ETF issuers and derivatives exchanges
Deeper knowledge about how indices work can drive better portfolio outcomes for investors. Our joint webinars and videos with asset managers and exchanges are designed to help you understand the methodology underlying our indices. For a larger selection of educational webinars, please visit FTSE Russell's dedicated BrightTALK channel.
New product launches
New index-linked investment products
FTSE Russell indices are used by asset managers, ETF issuers, derivatives exchanges and investment banks in every corner of the world. Our transparent approach combines rules-based, research-driven methodologies with strong, independent governance, to create high quality indices for issuers of equity, fixed income, smart beta, factor, REIT and ESG investment products.
Direct Indexing
Direct indexing is gaining popularity among investors due to its ability to offer personalized investment strategies and greater tax efficiencies. Unlike traditional mutual funds or ETFs, direct indexing allows investors to own the individual securities that make up an index, enabling customized selections based on personal values, sector preferences, or tax objectives.
The underlying index is the foundation of any direct indexing solution. Its construction methodology directly influences the universe of securities that shapes the portfolio, its risk profile, and its customisation potential. That’s why choosing the right underlying index is crucial. FTSE Russell indices offer robust, rules-based and transparent methodologies that provide the foundation for scalable and personalised solutions that deliver your intended market representation. With FTSE Russell indices underpinning your portfolios, you can be confident that your direct indexing solution is better aligned with your investment objectives.
How does the index matter?
Let’s explore how your choice of index could make a difference. Take the major US large-cap indices as an example. You might assume all indices automatically add stocks once they've gone public. However, not all of them do. And unless a stock is included in the index, it can’t have an impact on investment performance.
Timing makes a difference
Below are examples of well-known US large-cap stocks that were added to the Russell US Indexes soon after their initial public offerings (IPOs). Many were excluded from the S&P 500 index until years later as they hadn’t met the S&P 500 index’s profitability requirements. This meant missing out on the early stages of growth at those companies.
Disclaimer
FTSE Russell is not an investment firm, and this content is not advice about any investment activity. None of the information on this website or reference to a FTSE Russell product constitutes an offer to buy or sell, or a promotion of, a security. This content is solely for informational purposes. Accordingly, nothing contained in this website is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of making any investment through our indices.
FTSE Russell is a trading name of (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE Canada”), (4) FTSE Fixed Income Europe Limited (“FTSE FI Europe”), (5) FTSE Fixed Income LLC (“FTSE FI”), (6) FTSE (Beijing) Consulting Limited (“WOFE”) (7) Refinitiv Benchmark Services (UK) Limited(“RBSL”), (8) Refinitiv Limited (“RL”) and (9) Beyond Ratings S.A.S. (“BR”), which are subsidiaries of London Stock Exchange Group plc (“LSEG”).
Where it is the administrator, FTSE Russell is responsible for the production, governance, maintenance and change management of the FTSE Russell index. The index rules for the indices (the “Index Rules”) are prepared by FTSE Russell and are approved by the internal FTSE Russell Index Governance Board. FTSE Russell manages, calculates, monitors and distributes the FTSE Russell index in accordance with the Index Rules and conducts the index review process. All FTSE Russell staff are subject to policies pertaining to confidentiality, management of conflicts of interest, treatment of inside information and dealing in securities to control the exchange of information between staff and third parties.
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