Looking to avoid the pitfalls of market-cap indexing?

Looking to avoid the pitfalls of market-cap indexing?

by Christopher Doll, VP, Invesco Canada

Investors tracking market-cap-weighted indices may be exposed to several flaws inherent to that approach. A rules-based Fundamental Index^® approach focuses on the strength of the underlying business by looking at sales, cash flow, dividends and book value.

Scott Boniferro, Vice President, Global Investment Strategist, Invesco Canada, joined Larry Berman on BNN’s Berman’s Call to discuss the benefits of a Fundamental Index^® strategy and the differences between this rules-based approach and a traditional market-cap-weighted ETF.

This post was originally published at Invesco Canada Blog

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