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  5. CRQ: What are your thoughts on fundamental indexes? [iShares Canadian Fundamental Index ETF Common Class]
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Investment Q&A

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Q: What are your thoughts on fundamental indexes? Are there any emerging market fundamental indexes or etfs you would recommend<
Asked by John on May 06, 2024
5i Research Answer:

Fundamental indexes use metrics from individual companies to weight the individual holdings. For example, a company's five-year sales, earnings, dividends, buybacks, or other metrics can be used to determine the weight for each holding in the index. We think this is an interesting concept and can help weight higher-quality names more.

Some of the larger fundamental index ETFs include CLU and CRQ.

For international exposure, there is the CIE ETF. This ETF tracks companies based on dividends, free cash flow, sales and book value.