Today's Alpha Is Tomorrow's Beta, FTSE Russell's O'Keeffe Says

The transcript discusses the evolution of index creation over the past five years, focusing on factor exposure and the role of active asset management. It explores the significance of volatility and low volatility ETFs, particularly the Russell 1000 Low Vol. The Russell 2000 Dividend Growth Index is highlighted for its performance across different market conditions. The development of ESG criteria for index creation is also covered, emphasizing the importance of big data and exclusion criteria.

What are the four P's that drive performance in index creation?

• Philosophy, Process, People, Performance

• Planning, Process, People, Profit

• Philosophy, Process, Profit, Performance

• Philosophy, Planning, People, Performance

Which factor is often debated whether it should be included in index creation?

• Value

• Size

• Momentum

• Volatility

What is a key characteristic of the Russell 2000 Dividend Growth Index?

• Tracks companies with high momentum

• Excludes companies with high volatility

• Includes companies with a history of increasing dividends

• Focuses on large-cap companies

What are the three components of ESG criteria?

• Economic, Strategic, Governance

• Economic, Social, Governance

• Environmental, Social, Governance

• Environmental, Strategic, Governance

What is a common exclusion in ESG-focused indexes?

• Non-renewable energy companies

• Renewable energy companies

• Technology companies

• Healthcare companies