FTSE Value-Stocks Indices

These value-based equity indices combine FTSE’s globally recognised index expertise with Value Partners’ proven track record in disciplined value investing. The value-based methodology is designed by Value Partners Index Services Limited and the index is calculated and maintained by FTSE Group.

The FTSE Value-Stocks Indices offer investors an opportunity to access quality value stocks in the ASEAN, China, Hong Kong, Japan, South Korea and Taiwan markets through a unique, transparent, and rules-based value strategy.

Constituents of the FTSE Value-Stocks Indices must pass a proprietary value screening process which includes valuation, quality, and contrarian factors. The following factors are utilised to identify quality and overlooked value stocks in the ASEAN exchanges, China, Hong Kong, Japan, Korea and Taiwan markets:

  • P/E ratio
  • Dividend yield
  • Return on equity
  • Operating profit margin
  • Net gearing
  • A unique contrarian factor

Low company valuations alone do not directly translate into attractive value investments. To avoid value traps and focus on quality, this value screening process excludes companies which are highly leveraged and with thin profit margins. A unique contrarian factor is used to avoid stocks with consensus analyst “buy” calls which have notoriously lagged behind market movements.

The indices are designed for use as the basis of ETFs and other derivatives.

Other indices in the series include:

  • FTSE Value-Stocks ASEAN Index
  • FTSE Value-Stocks China Index
  • FTSE Value-Stocks China A-Share Index
  • FTSE Value-Stocks Japan Index
  • FTSE Value-Stocks Korea Index
  • FTSE Value-Stocks Taiwan Index