FTSE Licenses Three International Benchmarks to Schwab for the Creation of New Exchange Traded Funds
FTSE Group (FTSE), the leading global index provider, today announced that they have licensed three international equity indexes to Charles Schwab Investment Management for the creation of three new exchange traded funds (ETFs). The funds will be among Schwab’s first ETF offerings, and will track the FTSE All Emerging Index, the FTSE Developed ex-US Index, and the FTSE Developed Small Cap ex-US Liquid Index.
The FTSE All Emerging Index tracks the performance of large- and mid- cap stocks from 22 emerging markets including Brazil, China, Taiwan and India. The FTSE Developed ex-US Index is comprised of large- and mid-cap stocks from 24 developed markets, excluding the United States. Companies from the United Kingdom and Japan, followed by Canada, Germany and Switzerland make up a majority of the index. The FTSE Developed Small Cap ex-US Liquid Index is made up of small-cap stocks from 24 developed markets, excluding the United States. An enhanced liquidity screen ensures that the small-cap stocks in this index have a free-float adjusted market capitalization of at least $150m USD. Of the largest companies in the index, the majority are Canadian.
Over the 5-year trailing period, the FTSE All Emerging Index has consistently outperformed both the FTSE Developed ex-US and FTSE Developed Small Cap ex-US Liquid indexes. One reason for this outperformance is that the FTSE All Emerging Index is heavily weighted with Brazilian and Chinese stocks, which make up 19.36% and 17.87% of the index respectively, and its performance has been driven by the continued growth of these two economies.
"We are pleased that Schwab has selected FTSE benchmarks as the basis for their first international exchange traded fund offerings," said FTSE CEO Mark Makepeace. "FTSE's Global Equity Index Series consists of transparent, liquid and rules-based benchmarks that continue to be attractive to issuers of ETFs and other tradeable products worldwide." Added Peter Crawford, senior vice president at Charles Schwab, "Schwab is pleased to introduce an impressive array of Exchange Traded Funds. We were delighted to collaborate with FTSE, a highly reputable partner, in their development."
No comments:
Post a Comment