SOURCE: Russell Investments

Russell Investments

November 11, 2015 10:14 ET

Low Volatility and Equal Weight: Two Popular Smart Beta Approaches Among Advisors; FTSE Russell Survey

SEATTLE, WA--(Marketwired - Nov 11, 2015) -  According to the first FTSE Russell U.S. retail financial advisor survey, 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. 

Survey results show that nearly half (48%) of the financial advisors surveyed use an equal weight index, or plan to use one in the near future, and more than half (52%) are already using or very likely to use a low volatility index.

With growing demand from investors seeking an alternative way to measure the market, FTSE Russell launched the FTSE Low Beta Equal Weight Index Series. The index series is designed to reflect the performance of securities exhibiting relatively low beta, or market volatility, where all index constituents are weighted equally and is the basis of Powershares' two new ETFs; the PowerShares Russell 1000® Low Beta Equal Weight Portfolio (USLD) and the PowerShares FTSE International Low Beta Equal Weight Portfolio (IDLB).

Ron Bundy, CEO Benchmarks North America, FTSE Russell, said:
"We are seeing growing demand in the investment community for more sophisticated indexes that can measure market exposures efficiently and, in many cases, combine multiple factors. The new series initially includes two indexes based on well recognized market capitalization weighted benchmarks from FTSE Russell. The Russell 1000® Low Beta Equal Weight Index tracks U.S. large cap stocks and the FTSE Developed ex-US Low Beta Equal Weight Index tracks large and mid-cap stocks from developed markets outside the U.S."

Dan Draper, Managing Director, Global Head, Invesco PowerShares, said:
"We're excited to be rolling out two new low beta strategies to help our clients potentially reduce portfolio risk. This launch builds on successful recent introductions of the PowerShares Russell 1000® Equal Weight Portfolio (EQAL) in January and a new suite of PowerShares ETFs based on the Russell Pure Style Index Series in May. It's great to expand on our successful alliance and join forces again with a leading global index provider FTSE Russell."

More information on the FTSE Low Beta Equal Weight Index Series can be found on the FTSE Russell website.

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit

© 2015 London Stock Exchange Group companies.

Views expressed by Ron Bundy and Dan Draper are as of November 11, 2015 and are subject to change.

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