A news release said the relationship aims to produce investable “strategy indexes,” a category of indexes intended for investors who seek a more active investment approach.
The news release said the Fundamental Index methodology weights securities by fundamental measures of company size, as opposed to using the price-weighted methodology employed by traditional indexes. Currently, approximately $50 billion in assets are invested in products that use non-price-weighted index strategies as the underlying index.
The initial offering likely will be a global index that includes U.S. and non-U.S. exposures. Details on the new series will be issued closer to their launch late in the third quarter.