Pro-Financial funds track a series of fundamental indexes in the FTSE RAFI family, which are different from the stock indexes we follow most closely to monitor the markets. Those indexes – the S&P/TSX composite would be an example – weight stocks according to how big they are, whereas fundamental indexes factor in revenues, dividends, book value and cash flow. The net effect is to place more emphasis on stocks that are undervalued and less to stocks that have soared.
