First ETF Based On Fundamental Factors Selects FTSE RAFI Index

– FTSE Group (“FTSE”) announced today that the FTSE RAFI 1000 Index has been selected by PowerShares Capital Management, as the underlying index for the first fundamental factor-based ETF for US investors. The ETF, PowerShares FTSE RAFI US 1000 Portfolio, launches today and will trade on the New York Stock Exchange (NYSE:PRF).

The index is part of the FTSE RAFI Index Series, which was recently awarded the William F. Sharpe Indexing Achievement Award for the Most Innovative Benchmark Index. The PowerShares FTSE RAFI US 1000 Portfolio will track the performance of the top 1000 US-based companies whose fundamental factors –sales, cash flow, book value and dividends – determine the inclusion and weighting in the index. Analysis of the FTSE RAFI 1000 Index shows a positive return of 34% over a five year period, compared to –8% from the S&P 500 and –4% from the FTSE US All Cap index over the same period.

Mark Makepeace, Chief Executive of FTSE Group, said “FTSE is proud to have PowerShares as a partner, and we are pleased that FTSE indexes are now used as the basis of financial products designed for domestic US investors.”

Index values for the FTSE RAFI 1000 can be found on Bloomberg (fr10) and Reuters (.ftfr10) data terminals.

More information about the FTSE RAFI Index Series can be found at More information about the series, including constituent codes and performance history, can be found at www.ftse.com/rafi.