FT Wilshire Alternatively Weighted Indexes use portfolio optimization techniques to achieve their stated aims. This results in stock weights that can significantly diverge from market capitalization weighting.
FT Wilshire NxtGen Indexes target improved risk adjusted return while FT Wilshire Minimum Variance Indexes aim at lower index volatility.
FT Wilshire NxtGen Index Series
The FT Wilshire US NxtGen Index series uses more than 100 market and fundamental signals selected from well established academic research.
It applies robust machine learning models to mitigate overfitting and capture nonlinearities. The index finds the active allocation that maximizes the risk adjusted excess return of the portfolio. Constraints are applied to limit the industry exposure and the exposure of a single stock relative to the benchmark, the FT Wilshire US Large or Small Cap Index.
FT Wilshire Minimum Variance Index Series
The FT Wilshire US Large Minimum Variance Index aims to achieve reduced index level volatility relative to the underlying FT Wilshire US Large Cap Index.
It applies an optimization-based approach to seek balanced outcome between volatility reduction and portfolio diversification. In addition, it imposes reasonable control on style factor exposures which are deemed as sources of risk.
Wilshire Indexes is a global benchmark platform that provides institutional investors, asset managers and retail intermediaries unmatched flexibility in solving benchmarking, portfolio construction, and risk management challenges. Transforming the way investors use benchmarks to meet their objectives, Wilshire Indexes provides global coverage of the markets through the leading FT Wilshire Index Series. Combining new technology and modular products in a growth-aligned commercial model designed for collaboration, efficiency, and speed to market, Wilshire Indexes offers a completely new way to work with an index provider.
Wilshire Indexes operates alongside Wilshire’s investment management, consulting, OCIO, and alternative asset businesses, which are separately known as Wilshire Advisors LLC.
Wilshire® and Wilshire 5000® are registered service marks owned by Wilshire Advisors LLC and are used under license. “FT” is the trade mark of the Financial Times Limited and is used under licence.