This ETF tracks the eRAFI™ Industrial 25 Index. The index comprises securities in the 25 companies with the largest fundamental value, selected from a universe of industrial-sector companies falling within the top 100 companies listed on the JSE, as measured by market capitalisation.
The eRAFI™ methodology weights shares based on fundamental valuation metrics - sales, cash flow, book price and dividends, as well as two additional filters (the quality of earnings screen and the financial distress risk screen) - rather than on how large a company's balance sheet is, i.e. market capitalisation.