In this episode of FTSE Russell Index Ideas, Hannah Layman, head of sustainable index research and design at FTSE Russell, describes how she uses FTSE Russell’s “weight explainer” tool to help clients understand and communicate the drivers of different weight positions, especially in indices for sustainable investment.

Chapters

• (00:00:00) - Introduction
• (00:00:47) - Why we need a "weight explainer" tool
• (00:01:52) - The drawbacks of optimisation
• (00:03:00) - Explaining weights with a tilt-based methodology
• (00:04:10) - Using the weight explainer in a sustainable index
• (00:05:18) - Does the number of tilts you apply matter?
• (00:07:16) - The impact of correlation
• (00:08:44) - Feedback from clients and use cases