Sentences with phrase «indices weight issuers»
The RAFI website states that «traditional bond indices weight issuers solely by the market value of each firm's outstanding debt with no regard to underlying firm fundamentals.»
http://www.moneysense.ca/ Not exact matches
That isn't a positive sign — and yet these are the issuers with the biggest representation in index funds that weight according to market capitalization.
For equity indexing, weighting based on the size of the company can be an indicator of company strength, but weighting a company based on its level of outstanding debt may not necessarily be a reliable way to rank the value of an issuer in a fixed income index.
Diving deeper into the makeup of the index, the 47 % weight held by provincials & municipals consists of issuers such as the ones displayed in Exhibit 3.
Because it's an index fund, the portfolio is skewed toward large debt issuers, such as California and New York, which are weighted more heavily in the index.
Filed Under: Investing Tagged With: Equal Weight, Equal Weighted Index Funds, Funds, Russell, Weight Index, Weighted Index Fund Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.