FTSE Global Equity High Income Index Series

Key takeaways:

• Interest in high dividend-yielding stocks has risen, driven by their potential to provide steady cash flows and opportunities for capital appreciation. As a result, dividend-focused indices continue to be a popular choice for income-oriented investors
• The FTSE Global Equity High Income Index Series is designed to track the performance of global large- and mid-cap companies exhibiting relatively high tax adjusted dividend yields
• The rules-based index series provides an accessible and systematic approach to implement an equity income-oriented index strategy

Points of differentiation:

• The FTSE Global Equity High Income Index Series provides market participants with comprehensive coverage of companies exhibiting relatively high tax adjusted dividend yields within global equity markets
• The market cap weighted index series is ranked regionally based on forecast tax adjusted dividend yield, resulting in a more diversified and balanced approach while addressing concerns about potential yield traps through the application of a negative returns screen
• The FTSE Global Equity High Income Index Series is built using a transparent, rules-based methodology, designed to serve as a foundation for investable products and as valuable tools for research and performance measurement

What does our research mean for investors?

By reading this paper, market participants will understand the potential benefits of using a benchmark designed to include companies exhibiting relatively high tax adjusted dividend yields and the design and construction methodology of the FTSE Global Equity High Income Index Series.