The Rapid Ratings Indexes offer investors a family of benchmarks that are characterized by the superior financial strength of their constituents. The financial strength of the constituents is based on the Financial Health Ratings produced by Rapid Ratings, an independent rating agency. Rapid Ratings’ Financial Health Ratings are a composite of 62 separate objective quantitative metrics calibrated with more than thirty years of data and derived 100% from filed financial statements with no input from security issuers. There are currently two indexes in the Rapid Ratings Index Family:
- Rapid Ratings US Blue Chip Index (RRBCUS). Large Cap US stocks, diversified by sector.
- Rapid Ratings International (ex-US) Blue Chip Index (RRINTL). Large Cap stocks domiciled in Europe, Australia and the Far East, diversified by sector.
Key defining factors include:
The Rapid Ratings Indexes provide diversified exposure to approximately 40% of the companies contained in the relevant major benchmarks. Sector diversification is based on the capitalization weights of a broad universe of comparable stocks.
The indexes demonstrate high correlations to the relevant benchmarks. Accordingly, RRBCUS correlates highly to the S&P 500, while RRINTL correlates highly to MSCI EAFE.
The Rapid Ratings Indexes are rules based and fully transparent, employing a methodology that maintains sector allocations comparable to the major benchmarks. The methodologies used to determine Rapid Ratings’ Financial Health Ratings also provide a high level of transparency and consistency.
The Rapid Ratings Indexes are supported by extensive data, including the wide dissemination of real time prices and a twelve-year back tested history.