FTSE RAFI All-World 3000 Index - 6 October 2008
The FTSE RAFI All-World 3000 Index comprises the top 3,000 constituents by fundamental value selected from the constituents of the FTSE Global All Cap Index, part of the Global Equity Index Series (GEIS). This is the first index within the FTSE RAFI Index Series to cover both developed and emerging markets using RAFI methodology. The index is designed to provide investors with a broad benchmark that enables measurement of the top 3,000 companies by fundamental factors – cash dividends, free cash flow, total sales and book equity value – across both developed and emerging markets globally.
FTSE RAFI index-linked products can offer the advantages of a quantitative active management strategy with the highlights of passive investment: lower turnover costs and transparent rules-based selection, while retaining high investment capacity as fundamentals weighting does not increase exposure to high P/E (price/earnings) stocks during episodes of unsustainable P/E expansion. It therefore avoids over-exposure to the more overvalued stocks.
