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iShares Canadian Fundamental Index ETF - Common Units
Aequitas NEO: CRQ    

iShares Canadian Fundamental Index ETF has been designed to replicate the performance of the FTSE RAFI Canada Index, which comprises those Canadian companies with the highest fundamental weightings. The index weights constituents using four accounting factors, rather than market capitalization. These four factors include: total cash dividends (five-year average of all regular and special distributions); free cash flow (five-year average cash flow); total sales (five-year average total sales); book equity value (current period book equity value).
iShares Canadian Fundamental Index ETF 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. By using these factors rather than market cap to weight stocks, the Fundamental Index takes advantage of price movements by reducing the index's holdings in constituents whose prices have risen relative to other constituents, and increasing holdings in companies whose prices have fallen behind. In addition, fundamentals-weighting decreases exposure to high P/E stocks during episodes of unsustainable P/E expansion. Therefore, this approach avoids over-exposure to the more overvalued stocks.
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