The Russell Developed Europe Large Cap Emerging Markets GeoExposure Index, designed to track the performance of companies within its parent index the Russell Developed Europe Large Cap Index with significant revenue exposure to emerging markets, outperformed its parent index by 0.9% year-to-date, 1.7% (annualized) for three years and 5.5% (annualized) for four years ended January 16th (index history inception is July 2008).
"The performance of the Russell Developed Europe Large Cap EM GeoExposure Index relative to the European and emerging markets indices illustrates the positioning of gaining exposure to emerging markets through the stocks of developed market companies. If emerging markets are performing comparatively well, the increased exposure to companies which derive a significant portion of their revenue from emerging markets may lead the GeoExposure index to outperform its parent index, in this case the Russell Developed Europe Large Cap Index. We would expect the opposite when emerging markets are in a down cycle, yet it should be mitigated by all the constituents being within developed markets," said Russell Indexes senior research director Tom Goodwin. "This new index-based investment approach represents an indirect and unique route to gaining exposure to emerging economic growth potential as the markets redraw the global map."
Russell Indexes Performance | ||||||||
Russell Index | 2013 YTD as of 16/1/13 | One Year as of 16/1/13 | Three Year Annualized as of 16/1/13 | Four Year Annualized as of 16/1/13 | ||||
Russell Developed Europe Large Cap EM GeoExposure Index | 3.3% | 17.8% | 9.4% | 20.3% | ||||
Russell Developed Europe Large Cap Index | 2.4% | 18.0% | 7.6% | 14.8% | ||||
Russell Emerging Markets Large Cap Index | 0.8% | 10.1% | 7.9% | 22.7% | ||||
Source: Russell Investments