iShares Canadian Fundamental Index Fund offers the advantages of an active management strategy with the highlights of a passive investment: lower turnover costs and transparent rules-based selection, while retaining high investment capacity. By using these factors rather than market cap to weight stocks, the Fundamental Index takes advantage of price movements by reducing the index’s holdings in constituents whose prices have risen relative to other constituents, and increasing holdings in companies whose prices have fallen behind. In addition, fundamentals-weighting decreases exposure to high P/E stocks during episodes of unsustainable P/E expansion. Therefore, this approach avoids over-exposure to the more overvalued stocks.