FTSE All World ex US Index

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The Financial Times Stock Exchange (FTSE) All World ex US Index is a free-float,[note 1] market-capitalization weighted index representing the performance of around 2200 large cap and mid cap companies in 46 developed and emerging markets worldwide, excluding the USA. The index is derived from the FTSE Global Equity Index Series.[1] The index was launched on June 20, 2000.[2]

The index is tracked by the Vanguard FTSE All-World ex US index fund investor shares (VFWIX) and admiral shares (VFWAX); and the Vanguard FTSE All-World ex-US ETF (VEU).[note 2]

Methodology

FTSE index methodology is summarized in the table:

FTSE methodology summary [3]
Weighting methodology Market-cap-weighted, adjusted for free float.
Rebalancing methodology Periodic reviews. Annual country reviews on a region-by-region basis.
Tier 1: Broad-market classification Included: Shares listed on a stock exchange or recognized market that are in top 98% of each region by full market cap. Excluded: Convertible preferred shares or loan stocks.
Tier 2: Economic classification (developed or emerging markets
  • Wealth (GNI per capita)
  • Total stock market capitalization
  • Breadth and depth of market
  • Any restrictions on foreign investment
  • Reliable and transparent price discovery
  • Efficient market infrastructure
  • Oversight by independent regulator
Tier 3: Geographical classification (region or country
  • Permission for direct equity investment by non-nationals
  • Availability of timely data
  • Ability to retrieve dividends and capital gains in a timely manner
  • Demonstration of international interest
  • Existence of adequate liquidity
Tier 4: Style classification (market-cap breakdown for large-, mid-, and small-cap)
  • Large-cap: >72%
  • Mid-cap: Between 72% and 92%
  • Small-cap: (Applies buffers for each capitalization band)

Country constituents

The index is comprised of holdings from 46 countries.

FTSE All World ex US Index constituent countries (June 28, 2013)[4]
Country Country Country Country Country Country
Australia Czech Republic Hungary Malaysia Philippines Switzerland
Austria Denmark India Mexico Poland Taiwan
Belgium/Luxembourg Egypt Indonesia Morocco Portugal Thailand
Brazil Finland Ireland Netherlands Russia Turkey
Canada France Israel New Zealand Singapore United Arab Emirates
Chile Germany Italy Norway South Africa United Kingdom
China Greece Japan Pakistan Spain
Colombia Hong Kong Korea Peru Sweden

Annual returns

Annual returns for the index for the period 2003 forward are included in the table below. Benchmark returns are adjusted for withholding taxes.

Table. FTSE All World ex US Index[5]
Year Returns
2018 -14.13%
2017 27.11%
2016 4.80%
2015 -4.72%
2014 -3.31%
2013 15.31%
2012 17.48%
2011 -13.76%
2010 11.65%
2009 43.00%
2008 -46.26%
2007 18.17%
2006 28.10%
2005 17.27%
2004 21.73%
2003 41.60%

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Notes

  1. In March 2013, FTSE adopted a fundamental policy of using actual free float percentages (rounded up to the next 1%) in its indexes. The move was taken to reduce unnecessary turnover in the indexes. See Free Float Adjusted - FTSE, for extended discussion.
  2. Long-term Index performance is not publicly available. For this reason, mutual funds are often used as a proxy - which in this case is the Vanguard FTSE All-World ex-US Index Fund. This fund is also available as Institutional ( VFWSX) and Institutional Plus (VFWPX) share classes. These share classes are commonly used in the corporate retirement plan market. Publicly available index information can be found here FTSE Global Equity Index Series (GEIS) (All-World ex US).

References

  1. FTSE GEIS Brochure
  2. Other FTSE benchmarks used by Vanguard, Fact Sheet as of 28-June-13.
  3. International benchmarks, Vanguard Institutional
  4. Other FTSE benchmarks used by Vanguard, FTSE All World ex US Index tab, Fact Sheet as of 28-June-13.
  5. FTSE performance, Vanguard Institutional

External links