Wednesday, December 29, 2010

Fundamental Indexing

Fundamental Indexing involves using a company's fundamentals e.g. revenues, profit, book value, dividends, etc in determining the components and weighting of an index. There are fundamental indexes which use a multi-factor approach as well as ones which use a single factor. These indexes are an interesting and potentially useful supplement to quantitative analysis as well as specific style/strategy benchmarking.

Synonyms: Fundamental based index

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