RAFI Fundamental Index
Yesterday's gains have extended into today, and as we approach the last hour of trading, North American indexes are in the green. There really isn't any news and 2nd quarter earnings seasons is coming to an end. MBA mortgage applications in the US last week were higher than expected, but that's largely thanks to mortgage refinancing to take advantage of lower rates.
Continuing the discussion on fundamental indexing and finishing up chapter 2, the pioneer in fundamental indexing is Research Affiliates and their widely followed indexes, like the DOW 30 or S&P500, are the RAFI indexes such as: RAFI US Large Cap, RAFI US Small Cap, or RAFI Emerging Markets. You can invest in these indexes indirectly through funds or ETFs that try to replicate the indexes; or if you're so inclined, you can create your own fundamental screen. Research Affiliates would suggest you use criteria which is more representative of economic size such as: sales, cash flow, book value, or dividends; Company management is also less able to manipulate these numbers.
GB
Continuing the discussion on fundamental indexing and finishing up chapter 2, the pioneer in fundamental indexing is Research Affiliates and their widely followed indexes, like the DOW 30 or S&P500, are the RAFI indexes such as: RAFI US Large Cap, RAFI US Small Cap, or RAFI Emerging Markets. You can invest in these indexes indirectly through funds or ETFs that try to replicate the indexes; or if you're so inclined, you can create your own fundamental screen. Research Affiliates would suggest you use criteria which is more representative of economic size such as: sales, cash flow, book value, or dividends; Company management is also less able to manipulate these numbers.
GB
posted by Gordon Bell at
11:33 AM
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