Russell Global Indexes

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The Russell Global Indexes were developed by U.S.-based asset manager Russell Investments (Russell) to track the performance of different sectors within a range of global equities markets. They are constructed in the same way as Russell's signature U.S. stock market indexes like the Russell 2000.

Brief background

Russell launched its first global indexes early in 2007, covering 98 percent of global investable equity by tracking 10,000 stocks in 63 countries. Just over a year later, Russell added 'growth' and 'value' styles to most of their global indexes to track different sector performances in different regions.[1] To track different sectors of different regional stock markets, Russell can now create nine different indexes for each using size (small cap, large cap, total market) and style (growth, value, total) characteristics.[2]

In January of 2013, Russell Indexes and NYSE Euronex announced a global alliance that would span three distinct NYSE Euronext business lines and multiple geographies, as well as several facets of Russell’s global index business. The agreement included the transition of RussellTick, an index feed for real-time, intra-day values for the Russell family of indexes in the U.S. and globally, to NYSE Technologies’ Global Index Feed (GIF) protocol and extensive global distribution. Approximately $3.9 trillion in assets are currently benchmarked to the Russell Indexes globally. The alliance also included a commitment to develop additional joint global services and products, such as new index-based options.[3]

Trading Market

Russell Global Indexes faces stiff competition from the more established global indexes of asset manager MSCI Barra. MSCI launched its first international index series - including the signature MSCI World Index that's still the most widely-used - in 1969 and the group added four new international indexes in 2007.[4] One significant difference between the two groups' indexes is the fact that Russell's global company sizes (small-, mid- and large-cap) are determined across a single global standard rather than the region-to-region method MSCI employs.[5]

In March 2008 the Russell Global Index received an infusion of 70 initial public offerings (IPOs) of company stocks from 59 different countries, including 12 from the U.S. and nine from China.[6] Sixteen of those stocks moved directly into the Russell Global Large Cap Index, including three based in Hong King and three in Brazil.

References

  1. Russell Launches Style Indexes Globally. Business Wire.
  2. Indexes at a Glance. Russell Investment Group.
  3. Press Release. Bloomberg.
  4. International Equity Indices. MSCI Barra.
  5. Russell Launches Global Equity Indexes. Financial Planning.
  6. Russell Global Index to Add 70 IPOs. Forbes.com.