 |
|
 |
|
The Russell global-relative
You don't redefine large and small cap just because you cross a border. Neither do the Russell Global Indexes.
This graphic illustrates how using a global relative approach to defining large and small cap companies provides a consistent set of benchmarks for global investors.
Russell research shows that companies of similar capitalization around the world tend to perform alike (PDF). Based on this insight, Russell has created large and small cap global indexes which use a globally consistent set of market cap criteria to identify large and small cap companies globally, regardless of country.
Defining companies as small or large cap compared to their global peers allows investors to measure their own performance more accurately. This approach is what we call "global-relative," and it is changing the way investors use indexes to benchmark.
Russell's patent-pending global-relative approach is built on leading-edge research and index construction theory to provide the most accurate measurement of global market performance for today's investor.
Actual size
In a Russell global index, the break point for large or small cap companies is the same across the globe. Most global index providers view the world from a country-relative perspective. This means the break point is applied at the country level and therefore changes according to country. "Small-cap" in Russia, for example, might be a $10 billion dollar company, while "small-cap" in New Zealand is more likely $0.5 million.
Global equity markets are an important and growing part of the investable universe. The complexity of global markets demand the use of the best index design principles and practices. Russell Indexes' choice of global definitions of cap sectors in its global equity indexes reflects this imperative.
Isn't it time your index tracked actual market performance?
Subscribe to the Russell Global Indexes today.
CORP-5454
|
|
|
| |
Related articles |
|
|
| |
Global indexes
information |
|
|
|
|
WWW.RUSSELL.COM
INDIVIDUAL INVESTORS
INSTITUTIONAL INVESTORS
FINANCIAL PROFESSIONALS
SITE MAP
© Russell Investments 1995-2009. All rights reserved.
Legal information.
Privacy statement.
Indexes are unmanaged and cannot by invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
