Russell Investment Group today introduced a global equity index, made up of more than 10,000 stocks in 63 countries totaling $35.3 trillion in market value and covering 98% of the world's equity market. The new index comprises the existing Russell 3000 covering 3,000 U.S. stocks, the existing Russell/Nomura Total Market Index, covering 1,783 Japanese stocks, and 5,287 stocks in 61 other countries, Russell executives said today at a news conference. It is the first time Russell has created an index for stocks outside the U.S. and Japan.
Mark Thurston, head of Russell global equity research, said the stocks in the new index are investible, their weightings in the index adjusted for float - or shares available for public trading - and Russell uses use the same general methodology for inclusion based on market capitalization as in its existing indexes. The Russell 3000 represents 44.2% of the market capitalization of the global index, Mr. Thurston said.
The global index will have subindexes based on growth and value styles as well as on small-cap, midcap and large-cap tiers and by sectors such as ex-North American developed countries, which is equivalent to the MSCI EAFE, said Rolf Agather, director of Russell indexes product development.
Later this year, money managers and other financial companies expect to launch index funds, ETFs or other products based on the new set of global indexes, said David Grieger, managing director, Russell indexes, who declined to give specifics. Russell didn't provide details about the new index to any outside organization until today, he said.