FTSE Russell plans to roll out a new global index designed especially with the global equity allocations of U.S. investors in mind, the global index provider announced Thursday.
The new Russell 9000 Global Index will capture roughly 9,000 of the world’s largest companies across three market segments: the U.S., developed markets excluding the U.S., and emerging markets.
It’ll essentially offer exposure to a mix of the index provider’s Russell 3000, Russell 3000 Developed World ex US and Russell 3000 Emerging indices.
“The Russell 9000 Global Index builds on the strength and familiarity of the Russell US Indexes, extending a transparent and rules-based approach to a global scale,” said Gerald Toledano, group head of equity and multi assets at FTSE Russell, in a release.
“This new benchmark applies a consistent methodology across core building blocks, providing a clear and practical framework for global equity allocation – anchored by the flagship Russell 3000 Index as the U.S. foundation, alongside developed ex-U.S. and emerging markets.”
FTSE Russell, which is owned by London Stock Exchange Group, said the new index is born out of demand from its asset owner and asset manager customers, “who highlighted the growing complexity in global benchmarking and the challenges created by differing regional methodologies.”
According to the index provider, more than US$12 trillion in investor assets are benchmarked to or invested in products based on the Russell U.S. Indexes.
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