FTSE Group has leveraged its combined index and analytics experience to launch a series of indices aimed at delivering reduced index volatility. The newly launched FTSE Global Minimum Variance Index Series provides investors with a broad, diversified and investable portfolio incorporating a low volatility/variance objective, thereby offering potential improvements to the risk/reward trade-off versus conventional indices. The index series will compete against similar products from MSCI, S&P, Stoxx and Russell and could form the basis for future ETF launches.

Ossiam, a specialist smart beta investment manager and an affiliate of Paris-based Natixis Global Asset Management, has announced that four of its ETFs listed on the London Stock Exchange have reached their first anniversary. Whilst the firm’s equal-weight ETFs have disappointed somewhat, its minimum variance ETFs have posted exceptionally strong performance numbers.

European equity ETFs potentially offer long-term value for investors who can look beyond the immediate crisis currently afflicting the continent. “European equities are unloved and out of favour. But in this lies an opportunity”, says JP Morgan. “European companies are positioned to benefit from global growth, with an increasing exposure to emerging markets, so any evidence of a pickup in economic activity will be positive for earnings. At the same time, valuations are cheap, providing a potentially attractive entry point for long-term investors.”

Lyxor, one of Europe’s largest ETF providers, has rolled out a new smart beta ETF, the Lyxor ETF EURO SMARTIX iSTOXX 50 Equal Risk (ERC). The ETF, which has been listed on the NYSE Euronext Paris, is indexed to the newly launched EURO iSTOXX 50 Equal Risk Index. Unlike traditional capitalisation-weighted indices, the EURO iSTOXX 50 Equal Risk Index attempts to spread the overall risk of the portfolio equally between the 50 index components.