Canadian ETF knowledgebase
The fund has been designed to replicate, net of expenses, the performance of the FTSE RAFI US 1000 CAD-Hedged Index, which comprises the largest 1,000 US listed companies by fundamental value.
The fund offers the advantages of an active management strategy with the highlights of a passive investment: lower turnover costs and transparent rules-based selection, while retaining high investment capacity.
The index weights constituents using four accounting factors, rather than market capitalization. These four factors include:
This ETF tracks a Fundamental Index. The strategy is known as Fundamental Index or Fundamental Indexation.
Fundamental Indexation is designed to overcome the limitations of traditional indices based on market capitalization. Fundamental Indexation weights its constituents based on company fundamental factors including dividends, total sales, free cash flow and book equity value, each variable not depending on the fluctuations of the market valuation.
Fundamental Indexation seeks to identify the true "fair value" of each company.
|Inception Date||7 Sep 2006|
|Significant Currency Exposure||Yes|
|Management Expense Ratio (MER)||0.72%|
|Exchange||TSX (Toronto Stock Exchange)|
|Eligibility *||RRSP, RRIF, RESP, TFSA, DPSP, RDSP|
|DRIP available **||Yes|
|PACC Plan available **||Yes|
|SWP available **||Yes|
* Always check eligibility with your plan operator as plans and accounts can differ
** Not all brokers can facilitate these plans. Check with your broker.
To view the TSX or Morningstar fund page for this ETF click on the Fund Data menu tab or below:
Canada ETFs's analysis of this ETF will be available soon.
Index data as of 29 March 2013 (note the data for the CAD-hedged index could not be located, only the non-CAD hedged data).