Russell and Revere Collaborate on New Emerging Market Indices

September 17th at 8:00am by Tom Lydon

Russell Investments has expanded its index line-up, just one month after downsizing and closing the doors on various exchange traded funds. The index provider will offer a new quartet of benchmarks that give investors exposure to emerging markets.

“Where a company is headquartered is no longer the primary factor in how it makes money. Many of today’s large,multinational corporations have diverse geographic revenue streams,” Tom Goodwin, senior research director of Russell Investments said. “By more accurately identifying  what percentage of developed market revenue comes from emerging markets,and assembling an index based on this exposure,we offer an efficient way to access emerging market opportunities.” [Advisors Tap ETFs for Tactical Asset Allocation]

The new indices will follow a transparent rules-based methodology to identify companies with exposure to emerging markets. This way, investors can access emerging markets through developed markets, a way to mitigate the risk involved with overseas investing. The weighting of each company will be adjusted based on how the company fits into the index, according to the Russell press release. [Index ETFs Beat Most Fund Managers]

Revere LLC will work with Russell Indexes to create an index composed of companies that give true emerging market exposure. For example, if a company is domiciled in a developed market, research will indicate if the company does enough international business to be considered for the index.

The four indices are:

  • Russell 1000 Emerging Markets GeoExposure Index
  • Russell Developed Large Cap Emerging Markets GeoExposure Index
  • Russell Developed Europe Large Cap Emerging Markets GeoExposure Index
  • Russell Developed  ex-North America Large Cap Emerging Markets GeoExposure Index

Tisha Guerrero contributed to this article. 

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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