Index Strategy FTSE Global Equity Index Series Rebalancing Review and Flow Implications (September 2026)

Portfolio Strategy Research 24 August 2026 | 8:47AM HKT

FTSE Global Equity Index Series Rebalancing Review and Flow Implications (September 2026)

What Happened? FTSE Russell announced the indicative semi‑annual review results Alvin So, CFA | for its Global Equity Index Series (GEIS) after market close on August 21. All changes Goldman Sachs (Asia) L.L.C.

remain subject to revision until September 4 with implementation scheduled after Timothy Moe, CFA | market close on September 18 (Friday). Goldman Sachs (Singapore) Pte

Terry Chan Market Reclassification: Effective from this review, Vietnam will be reclassified | Goldman Sachs (Asia) L.L.C. from a Frontier Market to a Secondary Emerging Market, with implementation phased in over four tranches through September 2027, beginning with an initial Sunil Koul | Goldman Sachs International tranching factor of 10%. Meanwhile, Greece will be reclassified from an Advanced Emerging Market to a Developed Market in a single tranche. Kinger Lau, CFA | Goldman Sachs (Asia) L.L.C. Proforma Changes: For the FTSE Developed/Emerging (All World) Index (Large + Bruce Kirk, CFA Mid Cap), there are 34/125 additions and 117/112 deletions, respectively. In the | Goldman Sachs Japan Co., Ltd. FTSE Developed/Emerging All Cap Index (Large + Mid + Small Cap), total additions John Kwon amount to 143/238, while deletions total 117/138 (Exhibit 1). | Goldman Sachs (Singapore) Pte Index Implications: The proforma index cap is estimated at US$33.0 trillion for the Si Fu, Ph.D. FTSE Developed All Cap ex-US Index (-0.1%) and US$11.8 trillion for the FTSE | Goldman Sachs (Asia) L.L.C. Emerging All Cap Index (+0.9%), with index weight adjustments of 0.8% and 1.3%. Amorita Goel, CFA | Market Implications: The FTSE GEIS rebalancing is expected to trigger over Goldman Sachs (Singapore) Pte

US$15bn and US$10bn in gross two‑way flows across APAC and EM markets, Kevin Wang, CFA | respectively, with net passive inflows at US$4.1bn and US$3.8bn. Within Asia Goldman Sachs (Asia) L.L.C. Pacific, China (+US$1.5bn), Korea/Taiwan (+US$1.2bn each) and India (+US$0.7bn) are expected to see the largest net inflows (Exhibit 3), while Japan (‑US$1.0bn) may face the greatest selling pressure (Exhibit 4).

Sector Implications: Within Asia Pacific, Tech Hardware & Semis (+US$3.4bn) and Capital Goods (+US$0.5bn) are expected to see the largest passive inflows, while Banks and Autos (-US$0.2-0.3bn each) may experience the largest outflows.

Historical vs. Current Patterns: Relative performance of additions vs deletions has been volatile pre-announcement, consistent with recent momentum rotation dynamics. Historically, post‑announcement performance suggests moderate outperformance, albeit along a volatile path (Exhibit 5).

We highlight index and sector changes in the individual market/region sections, along with the stocks with the largest flow implications (Exhibit 2).

Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to

FTSE Global Equity Index Series (GEIS) September 2026 Review Summary 3

FTSE Australia & New Zealand 11