Lyxor launches 'fundamental index' ETFs

ETF provider Lyxor has launched tracker products based on ‘fundamental indices', which weight compani...

ETF provider Lyxor has launched tracker products based on ‘fundamental indices’, which weight companies based on factors such as earnings and dividends. The group has teamed up with California-based fund-strategy planner Research Affiliates to offer the four funds that will aim to track the FTSE RAFI indices. Traditional indices monitor shares based on the market capitalisation of relevant companies, which some investors argue creates a risky bias towards over-valued stocks. Lyxor ETF FTSE RAFI US 1000, FTSE RAFI Europe, FTSE RAFI Eurozone and FTSE RAFI Japan launched on the London Sto...