Russell, RAFI Team Up On Fundamental Indexes

Russell Investments and Research Affiliates announced this week the creation of a new suite of indexes based on the Fundamental index methodology developed by Research Affiliates founder Rob Arnott. The two companies formed a partnership last year, and are now introducing 24 fundamental-weighted benchmarks measuring the performance of domestic and international equity markets. While many of the most widely-followed indexes are constructed based on market capitalization, Arnott’s research has focused around alternative index construction and maintenance methodologies that break the link between stock price and a security’s weighting within an index. The Russell Fundamental Index Series is created from the Russell 3000 and Russell Global ex-U.S. indexes, where constituents are scored and weighted based on three fundamental measures of company size: adjusted sales, operating cash flow, and dividends plus buybacks. The benchmarks are further divided into Large Company and Small Company Fundamental Indexes. The new fundamental benchmarks include: Global Russell [...] Click here to read the original article on ETFdb.com. Related Posts: U.S. One / Russell Planning More ETFs October ETF Roundup: Launches, Filings, and Closures Russell Planning Major ETF Push PHB: Different Kind Of Junk Bond ETF PIMCO Preps To Boost Bond ETF Lineup