The maturity and prevalence of indexing on the equity markets have undeniably blurred the lines between active and passive management. Investors should be concerned because what appears to be a rules-based, transparent, low-cost strategy may involve hidden active choices that influence returns, risk and transaction costs.

In the latest edition of Design Matters, titled “What’s the Frequency… Russell?” Greg Behar of Westwood’s Managed Investment Solutions (MIS) team examines how the Russell U.S. Indexes’ decision to return to a semi-annual reconstitution schedule is transforming risk management practices, market participation and the future of custom indexing.