Reimagining Indexing

We show that the indexing gold standard of cap-weighting can be improved upon when index construction uses a company’s fundamentals to choose stocks—and then cap-weights them. This index, which we call RACWI, has markedly outperformed the most popular cap-weighted equity indices around the world over the last 30 years. Building what we believe is a better index fund that can earn a superior risk-adjusted return versus other cap-weighted indices is not only possible—it is a reality! Read Full Article »