FTSE RAFI US 1000 Index

Dictionary Says

Definition of 'FTSE RAFI US 1000 Index'


An index of stocks based on the largest 1,000 fundamentally ranked companies. The FTSE RAFI US 1000 Index was launched on November 28, 2005 as part of FTSE Group's non-market cap weighted stocks. The fundamental weighting factors include dividends, book value, sales and cash flow.

Investopedia Says

Investopedia explains 'FTSE RAFI US 1000 Index'


The FTSE RAFI US Index tries to reduce the exposure to overvalued stocks. This is especially true for stocks that have recently seen a seemingly unsustainable increase in price. For example the index will have less exposure to stocks that have seen large increases in price compared to their earnings (called P/E ratio). This lower exposure is compared to a market-cap weighted index.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
Trading Center