Index Strategies
RAFI™ Fundamental Growth Index
AT A GLANCE
Designed to capture true, sustainable growth—rather than expensive companies
Traditional growth indices often mistake high valuations for high growth, concentrating in expensive stocks whose fundamentals may no longer justify their premium. This approach can leave investors paying for optimism instead of participating in genuine business expansion.
The RAFI Fundamental Growth Index selects and weights companies based on real, observable growth in sales, profitability, and innovation—not on market prices or valuation multiples. By emphasizing measurable fundamentals such as sales, profitability and R&D investment, the index rewards firms delivering tangible economic progress and avoids the distortions of overvalued “glamour” stocks.
Thoughtfully designed to deliver for investors
The RAFI Fundamental Growth Index Strategy
- Measures true business growth.
RAFI Fundamental Growth identifies companies with measurable increases in sales, profitability, and R&D, avoiding the expensive, slow-growing stocks that traditional growth indexes often include. - Weights by fundamental growth rather than market price.
Companies are weighted by the scale of their fundamental expansion rather than their market capitalization, ensuring exposure reflects real economic progress instead of investor enthusiasm. - Provides diversified growth exposure.
Offers a diverse mix across sectors of innovative and economically significant companies, rather than concentrating on the trendy, popular and most expensive sectors.
RAFI FUNDAMENTAL GROWTH INDEX
RESOURCES
Factsheets provide information on recent performance, attribution, characteristics, country/sector weights, and top holdings.
Performance Snapshot
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