SANTA MONICA, Calif.--(BUSINESS WIRE)--Wilshire Associates Incorporated (Wilshire®), an independent, global advisory firm specializing in consulting services, investment products and technology solutions, today announced the launch of two new target income indices, the Wilshire TargetIncome 5% Plus Index℠ (suggested ticker:WTIFIV) and Wilshire TargetIncome 10-Year Treasury +2% Plus Index℠ (suggested ticker:WTI10Y). The indices have been licensed to New York-based ETF provider Global X funds as the underlying benchmarks for the Global X TargetIncome™ 5 ETF (CBOE:TFIV) and Global X TargetIncome™ Plus 2 ETF (CBOE:TFLT), respectively, which began trading today.
The new indices leverage a unique, structured approach to portfolio optimization intended to yield an income target that combines high diversification with the lowest risk necessary to achieve targets.
The offering leverages intellectual capital from two distinct Wilshire business units: Wilshire Analytics and Wilshire Funds Management. Wilshire Analytics is the technology foundation of Wilshire and creator of the Wilshire 5000®, definitive measure of the broad U.S. stock market. Wilshire Funds Management, the investment management arm of the firm that works with financial intermediaries globally, advises on over $185 billion in assets, including traditional and alternative investment strategies.
“While many high yield products exist today to service the growing demand for outcome-oriented investing, particularly as baby boomers look to retirement, few if any solutions address the challenge of volatility, much less risk at a basic level,” said Jason Schwarz, president of Wilshire Analytics and Wilshire Funds Management. “By combining Wilshire’s robust multi-asset analytics and deep institutional allocation expertise, we’ve structured indices that leverage an optimization approach designed to achieve a target yield and minimize risk through broad asset class exposure across a range of income-producing vehicles,” noted Schwarz.
Unlike other indices, Wilshire’s optimization approach does not assume a frictionless environment, and looks to achieve its targets as closely to the optimal outcome without imposing undue turnover and transaction costs.
“We’re proud to bring these indices to market and very pleased to work with Global X, recognized as a best-of-breed provider and well-respected in the ETF distribution space,” Schwarz added.
About the Indices
Wilshire TargetIncome 5% Plus Index and Wilshire TargetIncome 10-Year Treasury +2% Plus Index each measure a strategy designed to provide broad exposure to income-bearing assets through a universe of exchange-traded funds, optimized to seek annualized target income yields of 5% and 2% or greater than the U.S. 10-Year Treasury, respectively. ETF index constituents are selected based on asset class exposure, yield, fund liquidity and fees. Representative security types across ETF exposure include global and U.S. stocks; preferreds; U.S. real estate investment trusts (REITs); master limited partnerships (MLPs); energy infrastructure equities; U.S. Treasuries; investment grade and high yield bonds; U.S. Treasury Inflation-Protected Securities (TIPS); emerging market bonds; and, senior loans.
To access index returns, please visit www.wilshire.com/indexcalculator.
For more information, please visit wilshire.com/analytics/indexes/wilshire-targetincome-family.
About Wilshire Associates
Wilshire Associates, a leading global financial services firm, provides consulting services, analytics solutions and customized investment solutions to plan sponsors, investment managers and financial intermediaries. Its business units include Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets. The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in the institutional marketplace. Wilshire is also credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire’s strong analytics foundation. Wilshire developed the Wilshire 5000 Total Market Index and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire has grown to a firm of approximately 275 employees serving the needs of investors around the world. Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing 500 organizations with assets totaling approximately US $9 trillion.* With ten offices worldwide, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality products and services. Wilshire® and Wilshire 5000® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market Index℠, Wilshire TargetIncome 5% Plus Index℠ and Wilshire TargetIncome 10-Year Treasury +2% Plus Index℠ are service marks of Wilshire Associates Incorporated.
*Client assets are as represented by Pensions & Investments (P&I), detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money Managers (U.S. institutional tax-exempt assets)” as of 9/30/17 and 12/31/17, and published 2/5/18 and 5/28/18, respectively.