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The Russell World Cap Index as an equity benchmark


October 2011




Tom Goodwin
Principal, Wealth Econometrics LLC





We believe there will be a sea change in U.S. investors' use of benchmark indexes to measure their equity exposures. The popular practice of "mix-'n'-match" — using one index provider's benchmark for domestic equity, and another's for international equity — is based on a traditional strategic asset allocation split, between domestic and international equity exposure, which is out of date.

This paper makes the case for using the Russell World Cap Index (RWCI) as an equity benchmark. The RWCI has the virtue of closely matching the segments in which many U.S. institutional investors are already invested. At the same time, it facilitates travel further down the road to a fully global perspective.


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Gerry Lillis
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Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

Russell Investments is the owner of the trademarks, service marks, and copyrights related to its respective indexes.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.


Date of first use: October 2011
USI-11213


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