Tag Archives | PRF

Patented ETFs

Index provider Research Affiliates recently received a patent for selecting securities based on fundamental measures. According to the WSJ article Indexing Patent Tests Fund Firms, the merits of fundamental indexing versus more traditional indexing methods have been debated in recent years. Regardless of the debate, fundamental indexing has proved popular. Total assets tracking Research Affiliates […]

Fundamental Indexing

A new school of investing claims that exchange-traded funds based on the Standard & Poor’s 500-stock index, such as the SPDR S&P 500 ETF (SPY), are flawed. The problem, according to a recent column by John Spence, is that the S&P 500 can become top-heavy with pricey shares by using companies’ market value as a […]

Does Fundamental Indexing Work?

Three years after their introduction, fundamental ETFs are showing mixed results according to MarketWatch’s John Spence. Fundamental ETFs track an index that is weighted by revenue, earnings or some measure other than market cap. Their proponents claim that funds weighted on fundamentals are less risky and have a better chance of outperformance than funds that […]

Rob Arnott and Financial Services ETFs

Smart Money‘s Jack Hough recently interviewed Rob Arnott, former editor of the Financial Analysts Journal and founder of Reasearch Affiliates, to find out what Rob likes now. One area where Arnott sees value is financial services etfs. The logic is that bank failures and combinations will make the surviving banks stronger with more market share […]

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