RAFI ESG strategies combine the pioneering Fundamental Index™ approach with thoughtfully designed environmental, social, and governance investment themes.



Designed for investors with ESG investment objectives in mind


Based on the RAFI Fundamental Index methodology


Systematic, contrarian approach to ESG investing

Whether because of personal convictions, risk-reduction objectives, or a changing regulatory landscape, investors are increasingly considering the importance of integrating environmental, social, and governance (ESG) issues into their investment guidelines. RAFI ESG is a family of strategies that combine various ESG investing themes with the benefits of our leading smart beta construct.

Combining ESG with Smart Beta

Traditionally, most ESG strategies have been actively managed. Identifying active managers that outperform net of fees, and having the discipline to stick with them, is difficult. In addition, many actively managed ESG strategies lack transparency or are inconsistent in their application of ESG themes to individual stocks. By relying on the RAFI Fundamental Index approach, RAFI ESG strategies retain the benefits of traditional passive investing: simple, rules-based, transparent, and low cost, while offering the potential for outperformance.

RAFI ESG Strategies


A thoughtfully designed smart beta strategy that helps investors achieve the dual objectives of social responsibility and long-horizon outperformance


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