Tag archives: RAFI

Review of The RAFI Index Stock Picking Strategy

Last update on June 22, 2015.

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ETFs are great. As I’ve explained in my free book, I think they’re a much better way of investing your money than by investing in higher cost mutual funds. This has been particularly true for ETFs that invest in stocks.

However, no financial product is perfect, and if there’s one criticism of the traditional type of stock ETF, it is in its failure to distinguish between cheap and expensive stocks, even though buying cheap stocks has been proven to boost returns.

The traditional stock ETF weights each stock according to the market cap (i.e. the size) of their ...

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