Investment Strategy Indexing
As well as indices weighted by market capitalisation, FTSE Group (FTSE) also produces non-market cap weighted indices. Both institutional and retail investors are using this type of indexing as an alternative, and often complementary, investment strategy alongside cap weighted indices.
FTSE’s indices in this category include the FTSE RAFI Index Series, in partnership with Research Affiliates, which weights constituents by four fundamental factors, rather than market capitalisation. These factors include total cash dividends, free cash flow, total sales and book equity value.
The FTSE GWA Index Series, in partnership with Global Wealth Allocation Limited (GWA) captures a company’s wealth creation in the form of its net income, cash flow and book value.
FTSE also calculates Dividend+ indices, which are yield weighted. Currently, there are the FTSE UK Dividend+ index and the FTSE/JSE Dividend+ index.
For more information, please click the links on the right hand side of the page or contact your local press office.
- 2007 Press Releases
- 1 Oct 07 - FTSE JSE awards licences for FTSE JSE RAFI 40, a new fundamental weighted Index
- 22 May 07 - FTSE Group has sole rights to licence FTSE RAFI Index Series
- 27 Apr 07 - PowerShares FTSE RAFI 1000 named most innovative ETF
- 2 Apr 07 - FTSE RAFI Index Series licenced to Charles Schwab Investment Management
- 9 Mar 07 - Mitsubishi UFJ Trust and Banking Corporation Selects FTSE GWA Index Series
- 2006 Press Releases
- 2005 Press Releases