FTSE Russell launches AI-powered thematic indices

Thematic indices launched in partnership with MarketPsych

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FTSE Russell, the London Stock Exchange Group’s global index provider, has launched a series of thematic indices alongside behavioural analytics provider MarketPsych.

The FTSE MarketPsych Thematic Index series utilises a thematic classification database, which is developed through MarketPsych’s AI-powered framework.

It analyses LSEG’s data sets, including news, transcripts and financial information, then incorporates this into FTSE Russell’s rules-based index construction process. The result is a series of thematic indices available to investors on a global basis.

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These themes currently include: technology and innovation, society and demographics, geopolitical realignment, natural resources and infrastructure, and health and wellbeing.

Gerald Toledano, global head of equities and multi assets at FTSE Russell, said: “We are excited to launch the FTSE MarketPsych Thematic Index Series today, building on LSEG’s long-standing partnership with MarketPsych and reflecting FTSE Russell’s continued focus on developing innovative indexing solutions.

“By integrating MarketPsych’s AI technology-enabled workflow with LSEG’s extensive datasets and FTSE Russell’s rules-based index construction process, the series provides clients with a systematic and investable approach to accessing evolving investment themes.”

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Richard Peterson, CEO at MarketPsych, added the team is “pleased to support FTSE Russell in enhancing its thematic indexing capabilities and addressing longstanding investor demand”.

“MarketPsych’s AI and NLP-driven models generate differentiated datasets and insights, which can then be systematically integrated into transparent, rules-based index construction.

“This approach enables the creation of institutionally scalable, investable indices, extending the reach of our technology to a growing global investor base.”