Experts from leading ETF issuers gathered with global index leader FTSE Russell at the annual #InsideETFs industry conference this week to discuss the growing popularity of multi-factor approaches and the implications for market participants of using multi-factor indexes.
Led by FTSE Russell moderator Rolf Agather and including Kevin O’Leary of O’Shares Investments, Arne Noack of Deutsche Asset Management, Yasmin Dahya of JP Morgan Asset Management and Matthew Bartolini of State Street Global Advisors, the panel encapsulated the general outlook on multi-factor ETFs and particular approaches each organization has taken to address this growing market.
Kevin O’Leary - Chairman & Founder, O’Shares Investments:
“Exchange Traded Funds (ETFs) are the most disruptive and industrious change that investment managers have seen in decades. As a consummate entrepreneur, I want to be involved and think that new innovative ETFs with a rules based approach could be the primary driver of this tremendous growth.”
Arne Noack – Director, ETF Product Development, Deutsche Asset Management:
“Historically, investors have pursued exposure to single equity factors to seek higher performance compared with standard benchmark indices. The outperformance of individual factors can be highly cyclical, however, which is why an increasing number of investors are considering multi-factor ETFs as strategic holdings in their portfolios. These ETFs can help diversify across a number of potential sources for outperformance.”
Yasmin Dahya – Vice President, ETP Solutions, JP Morgan:
“J.P. Morgan Asset Management’s ETF clients asked for a means of capturing diversified multi-factor exposure while minimizing downside market volatility. The JPMorgan Diversified Factor ETFs have enabled us to offer this solution to our clients through an index-based investment approach.“
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
Views expressed by Rolf Agather of FTSE Russell, Kevin O’Leary of O’Shares Investments, Matthew Bartolini of State Street Global Advisors, Arne Noack of Deutsche ETFs and Yasmin Dahya of JP Morgan ETFs are as of January 23rd and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.
Past performance is no guarantee of future results. Index returns shown may not represent the results of the actual trading of investable assets.
This publication may contain forward-looking statements. These are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statements speak only as of the date they are made and no member of the LSE Group nor their licensors assume any duty to and do not undertake to update forward-looking statements.