Adapted for South Africa's specific investment environment, the eRAFI™ Overall ETF is managed by Absa Capital and local investment manager Plexus Asset Management. It tracks the Plexus Absa Capital eRAFI™ Overall SA Index, comprising 40 shares selected on fundamental accounting measures, calculated daily, from the top 100 JSE-listed companies.
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.