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

Portfolio Strategy Research 7 September 2026 | 12:04PM HKT

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

What Happened? FTSE Russell announced the final amendments to its review Alvin So, CFA | results for its Global Equity Index Series (GEIS) as of September 4, reflecting changes Goldman Sachs (Asia) L.L.C.

made since the release of the initial indicative results on August 21. The review Timothy Moe, CFA | results will be implemented after the 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 34/124 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 143/236, while deletions total 119/139 (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 (+0.01%) and US$11.9 trillion for the FTSE | Goldman Sachs (Asia) L.L.C. Emerging All Cap Index (+0.8%), with index weight adjustments of 0.8% and 1.3%. Kevin Wang, CFA | Market Implications: The FTSE rebalancing (covering GEIS, as well as the China, Goldman Sachs (Asia) L.L.C.

Taiwan, and NAREIT Index Series) is expected to trigger over US$18bn and US$12bn Amorita Goel, CFA | in gross two-way flows across APAC and EM markets, respectively, with net Goldman Sachs (Singapore) Pte passive inflows of US$4.2bn and US$3.6bn. Within Asia Pacific, China, Korea, and Taiwan (+US$1.1-1.3bn each), along with India (+US$0.7bn), are expected to see the largest net inflows (Exhibit 3), while Japan (-US$0.5bn) may face the greatest selling pressure (Exhibit 4).

Sector Implications: Within APAC, Tech Hardware & Semis (+US$4.0bn), Capital Goods, Health Care, and Metals & Mining (+US$0.3-0.4bn each) are expected to see the largest passive inflows, while Banks (-US$0.6bn), Consumer Staples, Autos, and Consumer Retail (-US$0.2bn each) may experience the largest outflows.

Historical vs. Current Patterns: FTSE GEIS additions have traded largely flat to down relative to deletions following the release of the initial indicative results. Historical patterns point to volatile but generally flat relative performance ahead of the effective date. (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