November 2, 2022

Investment precision for corporate bond investors: Russell Fixed Income Indices

FTSE Russell has created the new Russell 3000® Fixed Income Index and corresponding Russell 1000® Fixed Income and Russell 2000® Fixed Income sub-indices. These new indices deliver curated market weight benchmarks for investors who seek precision allocation to track the US domestic corporate bond market. Investors already familiar with our flagship Russell 3000 equity index franchise now have a complementary set of fixed income indices that can add flexibility and transparency to their asset allocation strategy.

The new Russell 3000 Fixed Income Index, along with its sub-indices:

  • Extends the range of corporate fixed income choices. By centering on debt issued by Russell 3000 issuers, it avoids the unintended risks of foreign asset exposures and improves transparency through public issuer focus
  • Provides a passive ‘crossover’ element which captures corporate bonds straddling US investment-grade and high-yield markets, shortening overall duration (in contrast to current market tracking indices in the US)
  • Aligns selection and reporting with its equity counterpart that should resonate with multi-asset investors seeking a balanced portfolio across US equity and fixed income assets