RAFI Equity Income

FTSE RAFI Equity Income seeks to produce sustainable dividend income through a diversified smart beta strategy that selects high quality, high dividend paying stocks.

At a Glance


 

Focuses on high-yielding quality companies

Ensures company and sector diversification

Builds on the RAFI™ Fundamental Index™

Thoughtfully designed to deliver for investors

Focuses on quality companies with high yield
With stock and bond yields at historic lows in many developed countries, identifying sustainable income is becoming increasingly important. Unfortunately, high dividend stocks can often come from low-quality companies unable to sustain their dividends. The FTSE RAFI Equity Income Index series screens for high-dividend-paying companies with strong growth prospects, low probabilities of distress, and conservative accounting practices—quality firms most likely to sustain and even grow their dividends.

Seeks company and sector diversification 
Quality, high-dividend-paying companies are selected and weighted using fundamental measures of company size, ensuring that the FTSE RAFI Equity Income Index is economically representative and does not take significant bets on individual sectors or countries.

Builds on the RAFI Fundamental Index 
The FTSE RAFI Equity Income Index series retains all the benefits of the Fundamental Index strategy: potential for outperformance, ease of implementation, low cost, and broad diversification.


 

Methodology

Methodology-RAFI_Equity_Income

 


 

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