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Four ETFs use fundamental data to avoid overpaying for stocks, offering value-focused alternatives to market-cap weighting.

Market News
26 Mar 2026
24/7 Wall Street
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Bullish
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Four ETFs—two following the Research Affiliates Fundamental Index (RAFI) and two from Dimensional Fund Advisors—offer portfolios weighted by fundamentals like sales and cash flow rather than market price. This approach tilts toward cheaper, value stocks across US large-cap, US small-cap, targeted value, and international value segments, avoiding the structural flaw of market-cap weighting that favors expensive stocks. Each ETF has distinct sector exposures and risk profiles, with Dimensional's funds adding profitability filters and international diversification. These ETFs suit investors seeking value-oriented portfolios anchored in economic reality rather than price momentum.

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