MSR British Equities – Exposure, TV5 Index
The MSR British Equities Dollar Weighted Exposure Index shows the total return of being long one FTSE-100 futures contract (the “current” contract, which is the most liquid) through time. This is “dollar weighted” because an investor can simply divide the number of dollars they want to invest by the current dollar value of the FTSE-100 contract and own that number of contracts for perpetuity. The “cash equivalent” version of this index will track the total return of the FTSE-100 cash market index including dividends (which are by definition reinvested into the FTSE-100 automatically when you invest via futures). FTSE-100 futures contracts are denominated in British Pounds, but MSR converts the daily returns to dollar based returns for this index.