- Index weighted by the fundamental factors of a company rather than market capitalisation
- Top 1,000 US stocks measured by these factors captured in ASX-traded ETF
- FTSE RAFI has 10 year track record providing alternatively weighted indices
FTSE Group (‘FTSE’), the global index provider, announces that BetaShares, one of Australia’s leading providers of exchange traded products, has chosen the FTSE RAFI US 1000 Index for its latest Exchange Traded Fund (ETF). The index was developed in association with Research Affiliates®, LLC and is the basis for the first US fundamental equity index ETF issued to the Australian market.
The BetaShares FTSE RAFI U.S. 1000 ETF recently launched on the Australian Securities Exchange (‘ASX’) and captures the top 1,000 US companies as measured by fundamental factors rather than market capitalisation.
Ms Jessie Pak, Managing Director, Asia of FTSE Group said:
“ETFs tracking the FTSE RAFI US 1000 Index trade on six exchanges around the world including in the US, UK, Hong Kong, Italy, France and Germany, so it’s pleasing to see an Australian product for the local market. We are proud to continue working with BetaShares who provide investors with access to a number of different products, especially as this year celebrates 10 years of FTSE and Research Affiliates calculating the FTSE RAFI Index together.
Alex Vynokur, Managing Director of BetaShares said:
“Since BetaShares launched the first Australian ETF based on fundamental index methodology in 2013, we have seen a significant increase in demand for similar products. Our newest ETF is another milestone for the market, as for the first time it provides Australian investors with exposure to US equities, based on fundamental factors.”
The FTSE RAFI US 1000 Index is part of the FTSE RAFI™ Index Series which was developed in association with Research Affiliates®, LLC. As part of FTSE's range of alternatively weighted indices, the FTSE RAFI™ Index Series selects and weights index constituents using four fundamental factors: dividends, cash flows, sales and book value. The FTSE RAFI US 1000 Index is comprised of the 1,000 US-listed companies with the largest RAFI fundamental scores selected from the constituents of the FTSE USA All Cap Index, which is part of the FTSE Global Equity Index Series.