Rafi-fundamental index strategy (I personally feel new)

Source: Internet
Author: User
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Our original research found that a fundamental index portfolio out‑med a comparable cap-weighted portfolio of U. s. large company equities by over 2% annually over the 43 years tested. A composite of four metrics of economy size is used in a Rafi portfolio to improve the long-term performance of the strategy over using individual measures.




Subsequent research discovered the fundamental Index methodology advantage extended to smaller company portfolios, international equities, emerging markets, and even within economical sectors (technology, health care, consumer, etc.) of the market.

Equally important, fundamental index portfolios preserve the original benefits of traditional capitalization-metrics indexes, including broad indexes, economic mic representation, metrics, scalability, low turnover, and tax efficiency. research Affiliates brings the innovative fundamental index concept to the marketplace through strategic affiliations with some of the world's leading financial institutions.

See our publications for more information on the fundamental index concept.


Overview | methodology | performance | Rafi FAQ
Specify the material contained in this document is for general information purposes only. it relates only to a hypothetical model of past performance of the fundamental index strategy itself, and not to any asset management products based on this index. no allowance has been made for trading costs or management fees which wocould reduce investment performance. actual results may differ. this material is not intended as an offer or a solicitation for the purchase and/or sale of any security or financial instrument, nor is it advice or a recommendation to enter into any transaction. this material is based on information that is considered to be reliable, but research affiliates and its related entities (collectively RA) make this information available on an "as is" basis and make no warranties, express or implied regarding the accuracy of the information contained herein, for any particle purpose. ra is not responsible for any errors or omissions or for results obtained from the use of this information. nothing contained in this material is intended to constitute legal, tax, securities, financial or investment advice, nor an opinion regarding the appropriateness of any investors. the general information contained in this material shoshould not be acted upon without obtaining specific legal, tax or investment advice from a licensed professional. indexes are not managed investment products, and, as such cannot be invested in directly. returns represent back-tested performance based on Rules used in the creation of the index, are not a guarantee of future performance and are not indicative of any specific ststment.

Russell Investors Group is the source and owner of the Russell index data contained or reflected in this material and All trademarks and copyrights related thereto. the presentation may contain in confidential information and unauthorized use, disclosure, copying, dissemination, or redistribution is strictly prohibited. this is a presentation of Research Affiliates, LLC. russell investors group is not responsible for the formatting or configuration of this material or for any inaccuracy in Research Affiliates 'Presentation thereof.

The trade names fundamental index, Rafi, the Rafi logo and the Research Affiliates specify name and logo are the exclusive intellectual property of Research Affiliates, LLC. any use of these trade names and logos without the prior written permission of Research Affiliates, LLC is expressly prohibited. research Affiliates, LLC reserves the right to take any and all necessary action to preserve all of its rights, title and interest in and to these terms and logos. fundamental index, the non-capitalization method for creating and weighting of an index of securities, is the patent-pending proprietary intellectual property of Research Affiliates, LLC (patent pending publication numbers: US-2005-0171884-A1, US-2006-0015433-A1, US-2006-0149645-A1, US-2007-0055598-A1, wo 2005/076812, wo 2007/078399 A2, EPN 1733352, and hk1099110 ).

Research Affiliates, LLC is an investigation Adviser registered under the investigation Advisors Act of 1940 with the U. s. securities and Exchange Commission (SEC ). the firm maintains a complete list and description of composites, which is available upon request. to obtain a presentation that complies with the requirements of gips, and/or a list and description of the firm's composites, please submit your request to info@rallc.com

Definition of indices:
A. the FTSE Rafi 1000 comprises the 1000 largest companies selected and weighted using our fundamental Index methodology.
B. The S & P 500 index is an unmanaged market index that focuses on the large-cap segment of the U. S. equities market.
C. The Russell 1000 index is a market-capitalization-weighted benchmark index made up of the 1,000 highest-ranking U. S. Stocks in the Russell 3000.
D. the FTSE Rafi 1500 comprises the 1001st to 1500th largest companies selected and weighted using our fundamental Index methodology.
E. The Russell 2000 is a market-capitalization-weighted benchmark index made up of the 2,000 smallest U. S. Companies in the Russell 3000.
F. The FTSE Rafi developed ex US 1000 index comprises the largest 1000 non US-listed companies by fundamental value, selected from the constituents of the FTSE developed ex US index.
G. msci eafe (Morgan Stanley Capital International Europe, financialasia, Far East) is an unmanaged index of issuers in countries of Europe, Australia, and the Far East represented in US dollars.
H. The FTSE All world ex-US index comprises large and Mid Cap stocks providing coverage of developed and emerging markets excluding the US.

Note-it is not possible to invest directly in any of the indexes above.


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