FTSE and Research Affiliates LLC have launched their fundamental index series, the FTSE RAFI Index series. The series comprises 24 indexes covering global markets, and includes the FTSE RAFI 1000, FTSE RAFI Global ex-US and the FTSE RAFI Canada Index.
Fundamental indexing selects, ranks and weights companies not by market capitalisation, but by financial measures of company size - including sales, cash flow, book price and dividends.
This is a departure from traditional market capitalisation-w
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