Index provider FTSE Russell has co-launched two smart beta indices that offer exposure to companies with strong environmental, social and governance (ESG) practices.
The FTSE4Good RAFI and the FTSE RAFI ex-Fossil Fuels indices result from an existing collaboration between FTSE Russell and Research Affiliates, a smart beta specialist.
The firms said both indices could be used to create responsible investment products.
Katrina F. Sherrerd, president and chief operating officer at Research Affiliates, said: “Over the years, many investors we’ve spoken with have expressed interest in a RAFI smart beta solution that reflects an [ESG] perspective.”
The partnership between the two firms is ongoing. Last year, for example, they launched an equity income smart beta product, the FTSE RAFITM Equity Income Index Series.
Investable products linked to indices developed by FTSE Russell and Research Affiliates had about $95.5 billion (€80 billion) of assets under management.
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