The Fundamental Index
The Fundamental Index examines a new approach to indexing that can overcome the structural return drag created by traditional capitalization-based indexing strategies, and in so doing, enhance the performance of your portfolio. This book outlines this breakthrough strategy and explains how it can be used to improve investment returns, typically at lower risk and lower cost than most conventional investments.
Praise for The Fundamental Index
"The Fundamental Index® method is a controversial financial innovation in the field of passive investing, but this book confronts the whole range of controversy head-on. The case for use of The Fundamental Index method and against cap-weighted indexes is uncommonly lucid, well-illustrated, and attention-grabbing. You cannot reach a judgment on The Fundamental Index strategy, pro or con, without reading The Fundamental Index."
— Peter L. Bernstein, author of Capital Ideas Evolving
"Rob's research on the Fundamental Index approach was a major epiphany for me. He has turned conventional investing wisdom on its head. This idea is a BIG deal—it will be the fastest new investment idea to reach $100 billion in assets in history. Every investor needs to read this book."
— John Mauldin, author of Bull's Eye Investing and Just One Thing
"The Fundamental Index method is a financial innovation so logical that it is compelling to any and all who believe that common sense is a required ingredient for portfolio construction."
— Bill Gross, Chief Investment Officer and founder of PIMCO
"Rob Arnott's idea is both elegant and profound, yet some very smart people have trouble grasping his idea because of their unexamined assumptions about how the market works. This book will help the reader get past those assumptions."
— Jack Treynor, President of Treynor Capital Management, Inc.
"Rob Arnott is a financial pioneer and this volume is a welcome addition to the rapidly evolving debate surrounding the true nature of indexation and passive investing."
— Andrew W. Lo, Harris & Harris Group Professor, Director, MIT Laboratory for Financial Engineering, MIT Sloan School of Management