From the article: "Traditional indexes weight individual stocks according to their market value (number of outstanding shares times the stock price). Fundamental indexes instead weight stocks according to other factors, such as sales, dividends, cash flow and book value."

In their short history, they're still not beating the S&P 500, but I can understand the reasoning that there should be a better way to build an index fund.

 

Submitted: Nov 27, 2007    Views: 303    Comments: 0    Likes: 2   


View Article: http://www.kiplinger.com/columns/fundwatch/archive/2007/fundwatch11...


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