FTSE launches Asian Sectors Index Series
Global index provider FTSE Group has launched the new FTSE Asian Sectors Index Series, which is designed to support thematic Asian investment strategies. The series aims to provide investors with a transparent and cost-efficient exposure to Asian sector index strategies and has been created by FTSE Asia Research in consultation with market participants.
The series will support enhanced strategies such as sector rotation and long/short sector plays enabling the creation of structured products, index funds and exchange-traded funds (ETFs).
The series consists of 18 tradable indices, each sector index being derived from the individual subsectors of the Industry Classification Benchmark (ICB), which is the global standard developed in partnership with FTSE Group and Dow Jones Indexes. It is based on constituents of FTSE Asia Pacific Index which covers the large- and mid-cap stocks from China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The 18 tradable indices in the series are:
FTSE Asian Autos and Trucks Index |
FTSE Asian Marine Transportation Index |
FTSE Asian Banks Index |
FTSE Asian Oil & Gas Index |
FTSE Asian Basic Resources Index |
FTSE Asian Personal & Household Goods Index |
FTSE Asian Chemicals Index |
FTSE Asian Property Index |
FTSE Asian Construction & Materials Index |
FTSE Asian Retail Index |
FTSE Asian Financial Services Index |
FTSE Asian Technology Index |
FTSE Asian Food & Beverage Index |
FTSE Asian Telecommunications Index |
FTSE Asian Health Care Index |
FTSE Asian Travel, Leisure & Media Index |
FTSE Asian Industrial Goods & Services Index |
FTSE Asian Utilities Index |
Jamie Perrett, head of quantitative research for Asia-Pacific at FTSE Group, says the index provider has noted evidence of increased investor appetite for sector plays, against a background of high volatility in regional equities markets.
The series will "provide a consistent and tradable performance benchmark across Asian sectors which can be used as a building block for sector asset allocation strategies", Perrett says.