RAFI Indices Launches Research Affiliates Deletions Index (NIXT)
13 Agosto 2024 - 8:45AM
Business Wire
A Milestone Addition to Suite of Innovative
Strategies – Recent Index Deletions Poised for Rebound.
RAFI Indices, LLC, the index company of Research Affiliates,
LLC, an investment advisor and global leader in smart beta,
enhanced index strategies, and asset allocation, today announced
the launch of the Research Affiliates Deletions Index (NIXT). This
innovative index capitalizes on the long-term price reversal of
companies removed from market capitalization weighted indices,
providing investors with a unique opportunity.
“When an index producer adds or drops stocks from the index,
they will inevitably add stocks that are popular, beloved, and
expensive and drop stocks that are unloved and cheap,” said Rob
Arnott, Chairman and Founder of Research Affiliates. “This was one
of the original motivations for the launch of the Research
Affiliates Fundamental Index (RAFI™) concept, and we now see a
unique opportunity to create an index that can harness this
structural alpha in a different way.”
The Research Affiliates Deletions Index employs a rules-based
approach to identify small cap value stocks. It selects companies
that have been deleted from market capitalization weighted indices
in the past year, subject to a quality screen. This approach is
designed to capture the potential for outperformance associated
with out-of-favor stocks while mitigating some of the risks
associated with individual stock selection.
“Underperforming stocks that get dropped by indexes are
inexpensive to begin with, and price pressures caused by the index
and its attendant framework only intensify their underperformance,”
added Arnott. “But once dropped by the index, there is a silver
lining for these stocks, they, on average, outperform the market
over the next several years, creating a compelling opportunity for
investors.”
For more information on the Research Affiliates Deletions Index
(NIXT), visit:
https://www.rafi.com/index-strategies/ra-deletions-index-series
To read our latest research titled “Nixed: The Upside of Getting
Dumped,” visit:
https://www.researchaffiliates.com/publications/articles/1043-nixed-the-upside-of-getting-dumped
About RAFI Indices
RAFI Indices, LLC is an index company founded in 2016 by
Research Affiliates. It specializes in constructing, publishing,
and licensing indices that reflect a deep, academically rigorous
understanding of the fundamental factors driving capital market
returns. The company is renowned for its innovative approach,
offering over 49 live strategies that cater to a diverse range of
investment needs worldwide. Importantly, RAFI Indices operates
independently and does not offer investment advice or sell any
securities, commodities, or derivative instruments.
Web: www.rafi.com
About Research Affiliates
Research Affiliates is a globally recognized investment advisor
established in 2002. Its mission is to challenge conventional
wisdom and revolutionize the investment community for the benefit
of investors through innovative research and product development.
The company offers industry-leading smart beta and enhanced
indexing, quantitative active equity, and multi-asset products.
Research Affiliates believes that because market prices are not
perfectly efficient, systematic investment strategies can provide
opportunity for improved investment performance. It partners with
some of the world's largest investment managers and offers mutual
funds, ETFs, commingled funds, and separately managed accounts. As
of June 30, 2024, the firm has over $147 billion in assets under
management through strategies developed by Research Affiliates.
Web: www.researchaffiliates.com LinkedIn: @Research-Affiliates
Twitter: @ra_insights
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