FTSE launches GDP-weighted index series

Oct 28th, 2013 | By | Category: ETF and Index News

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FTSE has expanded its line-up of alternatively weighted indices with the launch of the FTSE GDP Weighted Index Series.

FTSE launches GDP Weighted Index Series

The FTSE GDP Weighted Index Series re-weights the constituents of the FTSE All-World Index Series in proportion to their forecast GDP, as measured by the IMF.

The new index series is designed to reflect the performance of constituents of the FTSE All-World Index Series where an aggregate country’s weight in each index is proportionate to its forecast GDP, as defined by the IMF’s five-year purchasing power parity forecast GDP.

In common with all FTSE indices, the series is managed according to a publicly available set of rules, with the underlying indices overseen by an independent committee of leading market practitioners.

The indices are suitable both as benchmarks for actively managed funds and as underlyings for index-linked investment products such as exchange-traded funds (ETFs).

Commenting on the new indices, Reza Ghassemieh, Managing Director of Research & Development at FTSE Group, said: “We are delighted to announce the launch of the FTSE GDP Weighted Index Series, which adds to FTSE’s growing number of innovative alternatively weighted index offerings. Equity market capitalisation is often dissociated from economic measures of size, and many countries with deep equity markets are over represented in market capitalisation indices relative to their shares of global GDP. The FTSE Global GDP Weighted Index series seeks to reflect the distribution of forecast global GDP of individual countries as opposed to just the size of their equity markets.”

The series consists of the following indices:

FTSE All-World GDP Weighted Index
FTSE Developed GDP Weighted Index
FTSE Emerging GDP Weighted Index
FTSE Europe Asia Pacific GDP Weighted Index
FTSE Europe GDP Weighted Index
FTSE Developed Europe GDP Weighted Index
FTSE Eurozone GDP Weighted Index
FTSE Developed Europe ex UK GDP Weighted Index
FTSE Developed ex Japan GDP Weighted Index
FTSE Emerging ex China GDP Weighted Index
FTSE Asia Pacific ex Japan GDP Weighted Index
FTSE Developed Asia Pacific GDP Weighted Index
FTSE Developed Asia Pacific ex Japan GDP Weighted Index
FTSE All-World ex US GDP Weighted Index
FTSE Developed ex US GDP Weighted Index
FTSE Developed ex North America GDP Weighted Index
FTSE All-World ex North America GDP Weighted Index
FTSE North America GDP Weighted Index
FTSE Latin America GDP Weighted Index

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