It is rather notable to us that AAPL, the top weighted constituent in the S&P 500 Index in terms of market cap, is absent from the top ten individual holdings in PRF, and fundamentally based investors would likely argue that this is a display of AAPL’s stock price outpacing measurable company fundamentals such as the four that the RAFI strategy attempts to measure and isolate. Likewise, with PRFZ compared to U.S. Small and Mid Cap Indexes that are typically market cap weighted, portfolio managers will notice similar significant differences in terms of overall weightings to given names.
PowerShares FTSE RAFI U.S. 1000 Portfolio
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