Sponsor White Paper: What makes the fundamental index methodology work?

Fundamental indices are challenging the traditional capitalisation-weighted equity indices, which it is claimed overweight overpriced stocks and underweight undervalued stocks. These inefficiencies lead to a drag on returns of about 2% a year in developed markets and more in less efficient markets, according to research by Research Affiliates and BetaShares. BetaShares offers ETFs in Australia based these methodologies.

The full White Paper, What Makes the Fundamental Index Methodology Work?, is available here.

 

Sponsor White Papers

Wikipedia defines a White Paper as “an authoritative report or guide informing in a concise manner about a complex issue and presenting the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.”

Cuffelinks includes this section to allow our sponsors to share their longer research or opinion pieces with our audience without editing or comment by us. They are provided for general education purposes and do not address the specific needs or circumstances of any investor.

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