We have all heard about the large benchmarks like S&P 500 and the Dow Jones Industrial Average, but index engineers like Russell have helped financial advisors target specific segments of the market.
ETF Trends’ Tom Lydon sat down with David Koenig, Investment Strategist for Russell Indexes, to discuss Russell’s leading role as in institutional investing, notably how advisors have come to recognize Russell’s institutional indexing methodologies.
“In the early 1980s, this was a time when investment managers were essentially all benchmarked to one index,” Koenig said. “We recognized that investors need more precise tools to better measure markets.”
For instance, Koenig points out the Russell 2000, growth and value indices as a type of “smart-beta 1.0” that while tracking market-cap weighted methodology, also provided more precise market exposure at the time.
As part of a helping out the investment advisor community, Russell has also offered educational information on investing and recently launched the MethodologyMatters website.
Watch the video below to see the full interview with David Koenig.
To view past video interviews, visit our videos section.