The Fundamental Index: A Better Way to Invest -- Contents -- Foreword -- Preface -- Chapter 1: Efficient Indexing for an Inefficient Market -- Evidence of Market Efficiency -- The Case for Indexing -- Evidence of Market Inefficiency -- Conclusion -- Chapter 2: Origins of the Fundamental Index Concept -- Origins of the Research Affiliates Fundamental Index (RAFI) -- A Series of Aha! Moments -- Research Affiliates Fundamental Index -- Fundamental Index Performance -- Concluding Thoughts: A Better Way to Invest -- Chapter 3: Investors' Greatest Errors -- Negative Alpha -- Practicing What We Preach -- Conclusion -- Chapter 4: The Virtues of Index Funds -- Appeal of Equity Investing -- Equity Investing Choices -- The One Guarantee in Investments-Cost Matters -- Index Fund Advantages -- Avoiding the Performance Game -- Concluding Point -- Chapter 5: The Index Fund's Achilles' Heel -- Market Efficiency: Two Interpretations -- Constructing a Well-Functioning Index -- The Achilles' Heel of Cap Weighting -- The Problems with Equal Weighting -- Concluding Thoughts -- Chapter 6: A Fundamental(ly) Better Index -- Building the Fundamental Index -- Adjustments for Non-Dividend-Paying Companies -- Why Multiple Measures of Company Size? -- Advantages of a Composite Measure -- An Index of the Broad Economy -- Capacity and Liquidity -- Reconstituting the Fundamental Index: Keeping Turnover Low -- Concluding Comments -- Chapter 7: Fundamental Index Performance in U.S. Stocks -- RAFI U.S. Large Company Performance -- Digging Deeper across Market Cycles -- Digging Deeper into Different Time Periods -- An Equal Comparison: Fundamental Index versus Equal Weighting -- Out-of-Sample Results: Small Companies -- Using the Fundamental Index with Style: Growth and Value Applications -- Narrowing the Focus -- Extending the Analysis Back in Time -- Conclusion.

Chapter 8: Beyond Borders: Fundamental Index Performance in Global Markets -- Global Markets -- Multicountry Portfolios -- Emerging Markets -- Consistency Counts -- Concluding Lessons from the Global Markets -- Chapter 9: Has Theory Led the Profession Astray? -- Will the Real Active Strategy Please Step Forward? -- The Origins of Cap Weighting -- Validation of Cap Weighting by Theory -- 40 Years Later: Empirical Results of the CAPM -- Ockham's Razor Applied -- Concluding Comments: Theory and the Profession -- Chapter 10: The Basic Criticism: Our Style and Size Tilt -- Merely a Value Tilt -- Small-Cap Bias -- Fama and French Factors -- Some Big Surprises in Small Companies -- A Proof Statement in 2007 -- Conclusion -- Chapter 11: Other Common Critiques: Hits and Misses -- Mining the Data? -- Costs -- Is It an Index? -- Do We Know Which Stocks Are Overvalued? -- How Long Can It Last? -- Conclusion -- Chapter 12: Why Trust the Fundamental Index Concept? -- Stock Logic -- The Present versus the Future: How Often Is Wall Street Right? -- Why Does Wall Street Get It Wrong? -- Dynamic Style and Size Exposures: When Do We Want Value and Small Cap? -- Show Me the Numbers -- Fundamental Index Strategy versus the Crystal Ball -- Does the Fundamental Index Concept Work in Bonds? -- Conclusion -- Chapter 13: Finding Opportunity in a World of Lower Returns -- What Can We (Rationally) Expect from Our Investments? -- Forecasting Bond Returns -- Forecasting Stock Returns -- Investing in a Low-Return Environment -- The Outlook for Pricing Errors -- Could Pricing Errors Actually Increase? -- Conclusion -- Chapter 14: Using the Fundamental Index Strategy -- Asset Allocation and the Fundamental Index Strategy -- Should We Change Our Benchmark? -- Diversifying the Passive Allocation -- Different Markets, Different Investors, Different Needs -- Conclusion -- Appendix.

Notes -- References -- Index.