New index launches

In the current environment of rising inflation, interest rates, and geopolitical uncertainty iShares relaunched two ETFs in its factor suite (LRGF and INTF), using a multifactor strategy from index provider Qontigo.

The recently launched STOXX Global Metaverse Index uses a sophisticated methodology to screen those companies with the most relevant patents in technologies associated with the Metaverse. This allows investors to target innovators whose products and services are likely to be leading the transition to the virtual world in the coming years. A new Qontigo whitepaper explores the index in detail.

Qontigo has introduced the STOXX® World indices, a modular suite that allows investors to flexibly build portfolios covering a broad and liquid universe of markets.

Following a push from local authorities and significant evolution in ESG data disclosure, investors can now access reliable corporate information and invest in Chinese companies leading in sustainability.

The index follows a unique patents-based stock selection methodology targeting innovators and specialists that are helping create and deploy the Metaverse. With it, Qontigo expands its wide suite of thematic indices harnessing the upside of companies at the vanguard of new technologies.

The first collaboration between Postal Savings Bank of China and Qontigo will allow the lender’s clients to access a portfolio of large Chinese equities chosen for their sustainability scores and optimized to limit deviations from the benchmark in terms of risk and industry allocation.

The customized index is an optimized solution that balances multiple investment objectives and uses various inputs, including LGIM’s proprietary ESG data.

Lukas Smart, Head of US iShares Sustainable and Factors Product Segments, and Arun Singhal, Global Head of Index Product Management at STOXX, discuss the recent update to BlackRock’s multi-factor offering and the outlook for factor investing.

The new fund was listed on Sept. 7 and replicates the iSTOXX® Access Metaverse, an index tailored around a custom methodology aimed at tracking the key beneficiaries of a nascent theme in our modern world.

The STOXX Equity Factor Indices offer diversified exposure to five equity risk premia factors – Quality, Value, Momentum, Low Size and Low Volatility — through an enhanced multifactor approach designed for core portfolio allocation. Powered by STOXX’s indexing capabilities and Axioma’s risk models and portfolio optimizer, the indices deliver balanced, well-researched style factor exposures seeking long-term outperformance.

A new Qontigo whitepaper analyzes the risk characteristics and factor exposures of the STOXX Willis Towers Watson Climate Transition Indices (CTIs). The study helps investors understand the implications of a portfolio that is aligned with the goals of the Paris Agreement and that manages the risks and opportunities from moving to a low-carbon economy.

The exchange-traded fund offers exposure to an industry whose phenomenal growth has only accelerated in recent years. The underlying STOXX USA ETF Industry tracks US companies with the highest revenue exposure to businesses involved in the design, issuance, sale and trading of ETFs worldwide.