Fundamental index An index to beat the index

Investors who bought the S&P 500 index in the late 1990s ended up piling into expensive tech stocks. They were correspondingly underweight value stocks in the neglected «Old Economy». When the bubble burst, index investors suffered. More than five years on, the S&P 500 remains below its peak value. A new fundamental index aims to get round this problem. However, it is not a genuine index but an active quantitative strategy with a pronounced value bias. An index, devised by Research Affiliates, ...