Select Insights from
Research Affiliates

RAFI Indices is built with the research, insights, and strategies of our sister company:

APRIL 2017

Unlocking the Performance Potential in ESG Investing


By combining a tilt toward companies that display financial discipline and that embrace corporate diversity with the return engine of a fundamentally weighted portfolio, we believe investors in environmental, social, and governance (ESG)–related strategies have the opportunity to earn superior long-term risk-adjusted returns.

JULY 2017

A Smart Beta for Sustainable Growth


We demonstrate a smart beta that produces positive excess returns from sustainably faster growth in EPS. This simple, systematic strategy represents a significant improvement from today’s growth indices that fail to produce faster growth in EPS and have provided negative excess returns.


A Smoother Path to Outperformance with Multi-Factor Smart Beta Investing


You can outperform the market with substantially lower relative risk by diversifying across simple smart beta strategies based on a half dozen robust factors. Dynamically rebalancing these factor-based smart betas significantly improves returns.

MARCH 2005

Fundamental Indexation


A trillion-dollar industry is based on investing in or benchmarking to capitalization-weighted indices, even though the finance literature rejects the mean–variance efficiency of such indices. This study investigates whether stock market indices based on an array of cap-indifferent measures of company size are more mean–variance efficient than those based on market cap.


Chasing Performance with ETFs


ETF providers respond to investors’ preference for strong recent performance by launching new funds with hot strategies. Our research reveals a striking pattern of post-launch performance.

Further Insights from
Research Affiliates

buy high sell low picture

JUNE 2018

Buy High and Sell Low with Index Funds!


Arguments in favor of traditional passive index funds seem compelling. They offer low fees, limitless liquidity, and broad market participation. They match market performance and have negligible trading costs and tracking error—and they beat most active managers, most of the time.

MAY 2018

Food For Thought: Integrating vs. Mixing


Many of us know the painstaking process of weaning infants onto solids and persuading them to try new foods. We as parents constantly grapple at the mystery of what drives their likes and dislikes.


Craftsmanship in Smart Beta


In the previous article in this series, our colleagues John West and Trevor Schuesler explained the challenges of seeking positive alpha through manager selection. In this article, we highlight how financial advisors may add value with due diligence efforts on, perhaps, a more reliable source of excess return—product craftsmanship.