With rising demand for these smart-beta ETF themes, FTSE Russell has launched the FTSE Low Beta Equal Weight Index Series, which is being tracked by recently launched PowerShares Russell 1000 Low Beta Equal Weight Portfolio (NYSEArca: USLB) and PowerShares FTSE International Low Beta Equal Weight Portfolio (NYSEArca: IDLB).
The Russell 1000 Low Beta Equal Weight Index includes the large-cap Russell 1000 stocks, focuses on securities exhibiting relatively low beta, or low volatility, and equally weights components.
The FTSE Developed ex US Low Beta Equal Weight also screens for low volatility and equally weights components, but the international index covers 24 developed markets excluding the U.S.
“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,” Ron Bundy, CEO Benchmarks North America, FTSE Russell, said. “The new series initially includes two indexes based on well recognized market capitalization weighted benchmarks from FTSE Russell.”
For more information on smart beta ETFs, visit our smart beta category.
Max Chen contributed to this article.