For investors seeking a core portfolio that leans toward US small cap and value.
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® U.S. Market Factor Tilt IndexSM (Underlying Index).
The Morningstar® U.S. Market Factor Tilt IndexSM measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks. Stocks that are deemed to be small-capitalization or value will have an overweighting compared to their weight in a corresponding market capitalization-weighted index. Likewise, stocks designated as “large” or “growth” stocks will have underweighting compared to a standard market-capitalization weighting. The Morningstar® index methodology defines "U.S. market” as those stocks that form the top 99.5% of the market capitalization of the stocks eligible to be included in Morningstar’s investable universe. All stocks are then designated as "core," "growth" or "value" based on factors such as price-to-book ratios and price-to-earnings ratios, and a “modified free float” market-capitalization weighting. Stocks of companies with, for example, relatively low valuations based on price-to-book ratios, price-to-earnings ratios and other factors are designated as "value" securities. Similarly, stocks of companies with relatively high valuations based on price-to-book ratios, price-to-earnings ratios and other factors would be designated as "growth" securities. Stocks that are not designated as "growth" or "value" securities are designated as "core" securities. One cannot invest directly in an index.