PowerShares Capital Management has designed the FTSE RAFI US 1000 Index as the underlying benchmark for the new offering, which will track the performance of the top 1,000 US-based companies whose fundamental factors -sales, cash flow, book value and dividends – determine the inclusion and weighting in the index.
Fundamental indexing selects, ranks and weights companies by financial fundamental measures of company size. This methodology seeks to correct the potential of market-cap weighted indexes to overweight overvalued stocks.
More information about the ETF product is here .
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